An Action Plan For Refreshing Your Finances Ahead Of The New Year

It’s no secret that life can be expensive. From school household bills and car maintenance to school supplies and vacations, it all adds up. One minute you’re doing well and think you’re on track and the next, you’re falling a little behind. It happens. But that doesn’t mean you have to stay stuck in a financial rut forever.

With the New Year looming, it’s time to dust off your frugal skills and get your finances in order. Kick starting the way you manage your money in January will help you to feel like you’ve started the New Year off right. In just a few steps, you can start an action plan that can help you to get ahold of your financial situation forever.

Track Your Spending

First up, this is something that you can action now. Start today and get yourself ready for the start of the New Year. Track your spending and see where your money is actually going. If you think you know what your household bills, groceries or car payments really come to, you might be surprised. You’ll also find out where you might be able to make changes right away that can make a difference in the future.

Cut Out What You Can

Now that you know where your money goes, you can work out what to cut back on. You might not feel like your wasting money, but in some cases, you could be. Do you have subscriptions that you could cancel? Maybe you can make replacements? Try taking coffee to work in a thermos rather than buying out every day. Sometimes it’s the simple ways of saving that can make such a difference.

Consolidate Your Debts

It’s not uncommon to have debts, and it’s definitely not uncommon to have more than one. But when you do, you can often find that you’re dealing with difference rates of interest. Some can end up costing you more money in the long run. By working out the rates you pay, you can make a suitable move on clearing down your debts and paying less for them. Second charge loans can take you from multiple debts to just one, especially if you’re current credit isn’t looking so good.

Cut Up Your Cards

This one might be an extreme step for you, but it might also be a necessary one. Even if you can’t bring yourself to cut them all up, at least throw out the ones that you no longer need. If you’ve consolidated your debts, get rid of the cards. And if you have to keep one, make sure it’s the lowest rate you can get with a small limit. That way, you can make sure to pay it off every month and not undo your work so far.

Start A Savings Plan

And finally, it’s time to think about savings. You might already put money away, but if you’re looking to refresh your finances, you should get serious about it. Open a savings account or make an investment. No matter how small it is, by putting some savings away, you’ll instantly feel better. Not only will you have money set aside for your future, but you’ll have a contingency fund for if and when times get tough.

Now you know what you spend, you’ve cut back where you can, you’re working on reducing your debt the smart way, you’re spending less, and you’re saving more, you might finally feel on track. Refreshing your finances for the New Year doesn’t mean you have to make huge changes, just little ones that last.