In a poll of New Year’s Resolutions for 2018, 37% of people said they would include saving more money this year. If that includes you, and you haven’t done anything now is the time to start. So, where is the best place to start?
- Start by looking at your expenses for the last two to three months. Make categories for different types of expenses. Open a google sheet or spreadsheet and start entering the amounts spent in each category. This will show you where you are spending your money.
- Calculate the total for each of your different categories. You can have a lot of categories or just a few.
- Evaluate which categories you could cut back on. Is it eating out, coffee in the morning, grocery store or just shopping in general? Planning to cut back is the first step in organizing your budget.
- Find a focus. Decide what your focus should be for your finances. Do you need to pay off debt, establish a savings account or start retirement savings? Focus on one area at a time. Take the cutbacks you calculated in step three, and put any extra money into your focus area.
When I am focused on debt, I like to make a chart that shows my progress month to month. If financial security is your goal, you should always start by making a measurable and attainable goal. I believe in working on your financial goals a little at a time. So, start by creating a plan.
I offer budget evaluation services for as little as $50. Contact me today to discuss your options.