When a new year begins, chances are like many others you are making resolutions. While these are made with good intentions, you do not create a plan that will help you actually achieve them. Being able to meet a resolution is not something that will happen alone. You have to have commitment and a long-term dedication. Generally speaking, it will take you 66 days to turn a new behavior into a habit.
If you bail on your resolutions early in the year, then you have not given yourself enough time to begin developing this new habit. Some tips to help you form and keep new habits regarding your finances are highlighted here.
Save More
One of the first steps you will need to take when it comes to revamping your finances is to begin tracking your spending. Start off by writing down everything that you have to spend during the month, and then put the remainder of the money in savings. Even though you do not have to make a commitment to save this each month, it will give you a savings goal. You will be able to create a budget, rather than living beyond your means putting you in serious financial trouble.
Put Money in Your Retirement Account
There are many people who put off making any IRA contributions until the next tax season simply because this is when they think about it. However, when it is possible, you need to fund earlier in the year. The earlier that you are able to max out your IRA for the year, the sooner you will be able to being funding it for the next year.
If You get a Raise put Half in Savings
One of the biggest struggles regarding saving money is that you have to make a trade off. However, if you get a raise you will have the perfect opportunity to save without feeling a crunch because you are not able to save as much.
It is also a good idea to get some money put back in an emergency fund so if an accident or other issue arises you will not be strained to come up with the money you need. If you are unable to do this, you can also use payday loans, which will provide you with the funds that you need when you need them.
