In Need Of A Financial Detox for the New Year? Here’s How To Get It
As soon as the clock strikes midnight on New Year’s Day (or maybe a few hours later), we start to think about what the next 12 months will bring. New Year, new me – right? When you’re starting to think about your New Year’s resolutions, why not put the usual go-to choice of dieting aside and think about something that could really make a difference: your finances. You might feel as if you’re already on top of them, or, you might need a little help. Either way, it can really benefit your entire year by focusing on giving your financial life a good old fashioned detox.
Work Out Your Financials
The first thing you’re going to want to do as a part of your financial detox is to work out exactly where your money goes. You might think you know, but the chances are that you really don’t. So, what you’re going to need to do is sit down, get a pen and paper or your laptop, and go through your spending – for the previous month at least. As you start to track your spending, you’ll get a lot more insight into how where your money goes.
Cut Back Where You Can
Then, when you know where your money goes, you’re going to want to think about cutting back. Even if you think you’re good with money, there will be areas that you can cut back on. Maybe you have monthly payments that you make to different companies or for different products, including subscriptions. Take a look at them and see what you can cancel. Can you reduce any of the payments that go out or even cut back on all the coffee you buy?
Pay Off Your Debts
As you’re starting to cut back, you’re also going to want to work out how you can pay off any money that you owe. Even if you find that your debts are manageable, you can always work on reducing them and getting them paid off quicker. Try to use the snowballing method by paying off the debts with the biggest interest rate first and going from there.
Work On Your Credit
When you start to get back on track financially, you might want to think about improving your credit rating. Even if your rating is okay, you can still go about making it better. If you’re rating is bad, then you’ve got even more at stake. Make your payments on time, cut down the amount that you owe and show that you can be a good customer, even if that means searching for bad credit mobile phones and taking out a new manageable contract to prove that you can do it.
And finally, you might want to start saving. It’s not always that easy to save extra money each month, but if you’re making your payments on time and you’re cutting back on what you spend, it can help to put some money aside for when you need it. There’s not a lot of use of putting all of your money into paying off you debts if you get an unexpected bill that you can’t pay on time.