Repaid.org Banner Ad
 

Home / Finances / 5 Tips For Getting Your Financial House In Order

 

Well, here we are at the beginning of another year. While it may seem cliché and as if we are jumping on some sort of bandwagon, now is a great time to focus a New Year’s resolution regarding your finances. Sure, the New Year was last week. If most of us were to be honest, last week was the only time we stuck to our New Year’s resolutions. Being a fresh week, perhaps you and I can dedicate ourselves anew to attaining financial health and security. To that end, here are five money tips that may help you in the coming year.

Be Honest With Yourself

It is impossible to change a situation if you are not honest about it. You need to have a clear look at your financial health. The best place to start is simply writing down all of your monthly expenses and comparing them to your take home pay. Let’s not freak out just yet. No need to rush into a meltdown. This is just information you need in order to prepare a solid budget. On the face of it, the numbers may seem horribly skewed, but you must keep in mind that you can control your money and you can get out of debt!

Begin The Budgeting Process

After that initial look at your income and expenses, it will be time to track all of your other spending. This should include writing down every cup of coffee, soda, pack of gum bought. It will be tedious in the beginning, but over time you will begin to see places where you cut back without really depriving yourself.

Set Realistic Goals

The key to any goal is that it must be clear and realistically attainable. A vague goal that is wishful in nature such as ”pay off all of my debt in four months” is a waste of time. However, something as simple as ”I want to pay off credit card X in six months” is perfectly on target. It gives you a set amount to pay off and allows you to break it down into an exact number of payments. The same can be done with the down payment for a car or your first home.

Lower Your Expenses

Having tracked your expenses for a few months and formed a base budget, you can begin to look for ways to lower your monthly expenses and your discretionary cash outlay. The easy place to begin is question whether or not you need all of your subscriptions and memberships. Next, have a look at your cellphone bill. Do you really need all of those devices and can you lower your data plan by only connecting to the internet while on wi-fi? Can I raise my insurance deductibles or cut back on my smoking or alcohol intake? Could I eat out less? The list is almost endless and so are the opportunities to save money

Eliminate Debt

Everyone I have talked to this year has mentioned wanting to get out of debt. When it comes up, I ask ”how?” Generally, I get a blank stare and an uncomfortable smile. Debt is a simple thing to eliminate so long as you create a plan and have patience. There are hundreds of ways to go about paying off debt, but why not try one that offers the quickest gratification? Pay off the credit card or loan with the smallest balance?  This will give you an amount to pay and, keeping your budget in mind, a number of months to attain your goal in.

You may have other tips that you think are more important than the five mentioned here. Perhaps you would like to elaborate or expand on one of the tips mentioned. Either way, we would love to hear from you in the comment section. Hopefully, your tip will help one of our readers reach their financial goals this year.

 

About the author: Taylor

 

Taylor Brown is the founder of Repaid.org. He has paid down 90% of his credit card debt through smart budgeting, frugal-living, and inspiration/support from other personal finance bloggers.

 

Recent posts in Finances

 

3 Comments

  1. The fundamental strategy is to be real with yourself, track your expenses in line with your income. That way you will be able to eliminate some rodents like debts..
    Amos recently posted…How I SaveMy Profile

  2. Hi Taylor, nice post. One of the best thing to make our finances in order is to keep on managing it. A simple net worth sheet and budget plan could help us in any ways.
    Mary Grace recently posted…Difference Between HMO and PPOMy Profile

  3. Being honest with your current financial situation is a must in order to reaching financial goals. I guess at some point we’ve all lived in an illusion of a fit financial state. Getting the finances in order is a very difficult road, yet rewarding. Thanks for this post!
    FinanceQA recently posted…Is A Loan The Same Thing As A Line Of Credit?My Profile

Leave a Comment

Your email address will not be published. Required fields are marked *

CommentLuv badge