The holiday season has come and gone and a brand new year is in the making. As the bills from all of that holiday shopping start rolling in, many people start to panic about their finances. If you’re one of those people, don’t let paying the bills get you down; instead, think of this as the perfect opportunity for getting your finances in order. That might sound like a difficult task, but with the following tips, you’ll be able to get yourself back on financial track.
Create a Budget
When it comes to money, a lot of people fall behind because they spend more than they make. Going shopping and traveling is great, but if doing those things means that you’re going to fall behind on your bills or that you can’t put anything away, you’ll end up experiencing financial woe.
Create a budget. One way to do that is to determine how much you make each month and calculate your monthly expenses; your mortgage or rent, your car payment, all insurance payments, your utilities, loans, etc. Deduct your total monthly expenses from your monthly income. With this information, you can create a budget for other things (don’t forget to include savings!).
Nix Retail Therapy
Getting something new makes you feel good. Whether it’s new clothing, new décor for the home, or anything else, you feel some sense of pride when you go shopping. However, shopping can wreak havoc on your finances. It could throw your entire budget off track and leave you scrambling when the bills are due, or you could end up dipping into your savings. You don’t have to give up shopping completely; just makes sure you are wise about it.
Hire an Accountant
A lot of people try to handle their finances on their own, and that’s commendable; however, sometimes, you need a helping hand. From helping you create a budget to filing your taxes, an accountant can be one of the most valuable tools for getting your finances in order. If you’re serious about getting back on financial track, hiring an accountant NYC should be one of your top priorities.
Consider Making Extra Payments
If you are trying to save money, making extra payments might sound counterproductive, but in the long run, it can significantly improve your financial situation. The sooner you pay off your debts, the sooner you can start using that money you shell out each month for other things – like building a nest egg. If your budget allows, consider paying more than the minimum amount due. Not only will you free yourself from the burden of debt, but you’ll increase your credit rating, too. Talk about a win-win for your finances!
Staying on track financially requires upkeep. Simply reviewing your income and expenses once a year won’t cut it; you really have to go over your finances regularly. Make revisiting your budget, your income, and your debts a habit. Doing so will allow you to make adjustments as needed and ensure that you are staying on track. It may also be in your best interest to contact a manhattan bookkeeper if you need further help with reviewing your finances.
What type of goals do you have financially? Do you want to build your savings? Are you interested in making investments? Is buying a house and paying for it outright something you wish to achieve? Knowing what your goals can serve as great motivation to stick to your budget, pay down your debts, and review your finances regularly.
Look for Ways to Make More Money
Cutting your expenses and living frugally will only get you so far. The truth is, you need money to buy things, even if those things are just everyday essentials, like food and clothing. Plus, you don’t want to deprive yourself out of some pampering once in a while. Sometimes, all you need is a nice dinner out or a trip to boost your mood. If you find that you have cut your expenses as much as you possibly can, but you still need more to get you back on track financially, or that there’s nothing leftover for enjoyment, consider looking for ways to make more money. This might mean looking for a better paying job or taking on a side job in addition.
If you’re stumped for ways to make extra money, take a look at your talents and think about ways you can monetize them. For example, if you enjoy painting and your work is pretty good, look into selling your work at craft fairs or online. If you don’t have a talent that you could make money, there are literally dozens of creative ways that you can bring in some extra cash. From tutoring to babysitting, or even walking dogs, there are so many ways that you can make a side income.
With these tips, you can get yourself back on track, ease your worries, and end your year on a financial high note.