Some people vow to get into shape when a new year rolls around. Others plan to find a new job, one that gives them more money and more license over how they spend their days. For others, it’s all about improving an area of life which, left unattended, can cause a lot of unnecessary worry and stress: finances. If you’re planning on making this year the one in which you grab your financial circumstances by the horns, read on below. It’s not as difficult as you think!
Of all the common problems that people run from, it’s their financial situation. It’s all too easy to bury your head in the sand and pretend that everything is under control, even when you know in your heart of hearts that it isn’t. While hiding from the problem may have been all well and good in the past, this is the year that you’re going to get it under control, remember? That means having a clear image of the state of your finances. Even if it doesn’t make for pretty reading, it’s the first – and arguably most important – step of the process.
Make a Budget
If you’ve been living life on autopilot, spending what you want even when you don’t really understand what’s coming in, then it’s time to change. Fortunately, this isn’t an overly complicated process. In fact, anyone can do it! All you need to do is make a list of all of your bills, and then compare it to how much you earn. If the calculations show that you’re spending more money than you’re earning, then you’ll want to find bills to cut out of your life. Even this is easier than most people think: TV or insanely fast internet, for example, are not essential to living.
Improve Your Credit Rating
If you’ve had years of poor financial decisions, then it’s likely that you have a poor credit rating. This may stop you from moving forward with your life, even after you’ve got the rest of your financial life under control. As such, it may be worth considering looking at loans for poor credit; you’ll have the money you need to move forward, and at the same time you’ll be improving your credit rating. Remember: just because you made financial mistakes in the past, that doesn’t mean that you need to carry them around with you forever.
Find Extra Income Sources
Now, we know that jobs aren’t always the easiest to come by, but the truth is that most people have more ways to make extra money than they think they do. For example, you could give lessons if you have a particular talent, sell fruit and vegetables at weekly stalls, or look at how to make some side money online. It won’t be the same as a second full-time income, but you’ll notice the difference in your bank account – and you may even enjoy it!
Combine the steps above with educating yourself about financial matters through blogs, books, and podcasts, and it’ll be a fruitful financial year for you.