Everyone knows the struggle of keeping up with paying monthly bills. You may be the head of a family, a breadwinner who must shoulder the electricity bill, the rent that’s due at the end of the month, or the payment for the Wi-Fi connection. Or, you may be single and living on your own, staying independent and self-sufficient as you save up money for yourself.
Either way, the big question is this: how can you stay on top of your finances while having enough savings? The short answer is that it’s never easy. Finding ways to improve one’s finances always takes discipline and consistency, and if you have neither, you will always feel like you’re trying to grasp for something that never fully solidifies.
When you’re working hard to earn money, you must be able to see the fruits of your labor. It begins with the little things—to step away from debt, you must not accumulate more debt. It also takes a high level of self-control to avoid spending unnecessarily.
As the new year rolls in, you must remember that to improve your finances, all it takes is grit and perseverance. With these, your hard work will surely manifest throughout the coming months. In this article, we provide you with several tips on how you can improve your finances this 2020. Follow these tips and see big changes happen in your life.
10 Tips To Stay On Top Of Your Finances In 2020
1. Begin with the end in mind. Set achievable goals on the things you want to achieve this 2020. This way, you can delegate your daily, weekly, and monthly tasks, and allocate enough monetary resources for each of these tasks.
Your daily tasks should be aligned with your big picture vision for this entire year. For instance, if you want to hit the gym every weekend, you can squeeze in some time for exercise on your daily planner and allocate the necessary resources for this task. This should be part of your overall goal to get fit by the end of the year.
2. Invest your resources into something wise, like a sideline. Thinking of buying a new camera to try out photography? If it’s a smart investment, why not go for it? Your hobby could turn into a sideline job if you’re passionate over it. These days, wedding and events photographers can earn a lot of money. The right portfolio will boost your career.
3. Discuss your financial situation with your loved ones. The anxiety of financial distress can be a heavy burden to carry alone. If you’re finding it difficult to save up enough money, you can reach out to your family or closest friends and talk about your financial situation.
Releasing the stress that comes with financial fears can provide you with more hope for your future. You are not alone in your journey.
4. Start building your emergency fund. In case something life-changing happens, it’s better to be ready with an emergency fund. You may lose your job or get into an accident. Whatever the case, an emergency fund can be a lifesaver.
To start saving up for it, all you need to do is to calculate your monthly expenses, including your utilities, rent, mortgage, and basic needs. From then on, your emergency fund should be at least three months’ worth of your monthly expenses.
5. Stick to your daily budget. Remember what we said about discipline and consistency? You can begin to improve your finances for this year if you stick to your daily budget and avoid buying unnecessary things.
Do you really need a new pair of shoes if you already have an entire closet of them at home? Be firm with yourself and stick to spending only on things that you truly need. Make a grocery list of the items you need to buy. And, maybe, instead of buying expensive coffee, you can start making coffee at home. Lastly, you can also bring lunch at work.
6. Build your credit score. To stay on top of your finances, you sometimes resort to making loans that will help you pay off immediate debt. One way of knowing if you can borrow loans is if your credit score is good enough.
If you begin 2020 not knowing about your credit score, you can talk to a trusted financial advisor and discuss whether your score is good enough to earn some loans. Having a good credit score can help you with major purchases like a new car or even a house.
7. Define your long-term financial goals. Your present financial turmoil is only temporary, and you mustn’t overlook your future. To do this, you must set achievable long-term financial goals.
For instance, do you want to save up at least P100,000 within 12 months? Ask yourself if this can be done if you spend less money and save up more. Once you’ve set these long-term goals, it’s time to plan for them and get into action.
8. Get a job that pays higher than your current salary. If you don’t feel financially secure in your current work, perhaps it’s time to find one that pays better.
You deserve to know that the hard work you’re putting out is getting some worthwhile returns. Widen your options and look for a higher paying job somewhere else. You could also ask for a raise from your current employer if you’ve been in the company long enough.
9. Track your expenses. Let 2020 be the year you begin tracking your expenses. Save your receipts every time you purchase something or eat at a restaurant. Use a notebook to jot down your expenses. This way, you’ll know if you’re able to follow and stick to your monthly budget.
10. Invest in insurance. Lastly, the best way to save up money for the future is by investing in personal insurance. There are different kinds of coverage, and one that’s becoming popular these days is variable universal life insurance. Protect yourself from fraud by finding time to talk to an insurance agent to discuss insurance possibilities.
At the end of the day, remember that improving your finances is a long-term process. You must take the time to build up your savings. All you need to do is take the first step.