Get Ahead Financially in 2018 with These 5 Budgeting Tips
2018 is just around the corner, so it is a good time to plan your financial resolutions for the upcoming year so that you can get ahead financially and overhaul your life.
Following are 5 budgeting tips that will help you get ahead financially in 2018:
1. Create a Budget
A financial plan cannot succeed without creating a budget. It is the backbone of your financial success. By developing a budget, you will make sure that you don’t overspend and your finances are in order. Once you have a clear budget of where you are spending your money every month, you will be able to make educated decisions regarding your money allocations.
Follow these tips to develop your budget:
- Use apps such as Goodbudget, Fudget, Dollarbird, or BillGuard, etc. to track your spending conveniently.
- Plan your next month’s expenses in advance.
- Set easy to achieve, short-term goals.
- Have long-term, tangible goals.
2. Decrease Debt
Don’t let your debt overburden you in 2018! Pay down your debts so you can have the ability to spend. Paying down and prioritizing your liabilities will lead you to financial freedom that you deserve.
Follow these instructions to start paying down your debt:
- Make sure that you pay down the highest interest debt first.
- Pay more than your minimum payment if it’s possible.
- Regularly check your credit card balances every month.
- Plan to pay off debt or increase your savings if you are anticipating a salary increase or expecting a tax refund.
3. Spend Less
Spending less is one of the easiest ways to get your finances in order. It is recommended that you pay attention to what you are spending and how important it is to spend on a specific commodity. You will be able to save more money if you understand your spending habits better.
The following tips will help you spend less:
- Divide your income statistically. Use 50% of your income towards critical expenses such as food, utilities, and mortgage, 15% towards retirement, and 5% towards savings.
- Use an app to track your spending conveniently (mentioned above).
- Try to pay with cash as much as possible.
- Be flexible with the brands you purchase.
4. Close Unnecessary Accounts
Having multiple credit or checking accounts is not a necessity. While there may be some benefits associated with it, the ultimate answer is no. It would be a good idea to close unnecessary accounts unless you know what you are using them for
5. Learn More About Finances
Learning about your finances will help you make informed decisions and get ahead financially in 2018.
Following are some ways to learn more about the financial world:
- Try to attend home-buying seminars when possible
- Discuss your financial plans with a qualified financial planner.
- Become a member of a local credit union.
- Discuss retirement investment options with your employer.
In conclusion, while planning to get ahead financially can be a bit of a hassle, it is definitely worth it. If you plan your financial resolutions now, you will be making sure that you are on the right path for financial success in 2018.
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