The new year is approaching so you know what that means, time to start making new years resolutions. Now is the perfect time to start re-evaluating our finances. Regardless of the time of year, it’s always a good idea to keep an eye on expenses. If you want to save more money below is a plan of action that can be useful.
Track all of your expenses:
And I do mean all of your expenses. A lot of times what ends up happening is that consumers only track major expenses. Small purchase like a daily cup of coffee can easily add up to several hundred dollars a month. Once you have figured out where all of your money is going, you can start cutting un-necessary expenses.
Seek out cheaper alternatives:
One of the fastest ways to cut back on expenses, is to completely cut out the smaller expenses (for instance that cup of coffee). If this doesn’t seem like a viable option, you can do the next best thing, and that is to find cheaper alternatives. This can be done by either purchasing a smaller size/quantity of the product, or by purchasing the lesser known brand.
If abandoning your favorite cup of joe is out of the question, you can opt to buy it less frequently (every other day). While this method won’t exactly save you much money, it is a step in the right direction.
Set realistic goals and stick with them:
Let’s face it, new years resolutions are made to be broken. Money management is one of the most broken new years resolutions. For some reason, people are failing to complete what they set out to do. Do not fall prey to this trap. Be realistic about your goals, do not set goals that you cannot achieve.
To help you stay motivated, start with small money management goals and set deadlines for each. Having achievable goals will help you stay motivated and help drive you from goal to goal.