20 Jan Detox Your Finances in 5 Smart and Easy Ways
If the holiday season has left you close to broke and the bills are starting to stack up, it’s time to look for ways to get your finances in shape. For most, January has become the month when many of us try to detox. We give up beer for a while, cut off our portion of that steak, and make promises to be nicer to our neighbour in the new year.
This is also the time of the year where it makes sense to regain essential control of our finances. It is important to get rid of old habits, any residual money pits, or anything else that is hurting you financially so that you can move on in a financially sound manner.
While the word “detox” can be associated with the body, such as taking away body toxins or cleansing, this term can be used in helping us take control of our finances. A great way to start 2017, right?
This article shares how to detox your finances in 5 smart and easy ways:
Take a look at your things at home. Sort them by identifying which are the items you don’t need anymore, and the things you can sell. You’d be surprised how much of these things you don’t really need and just let go of that inner-hoarder in you. Be cautious not to “over-justify” just because you don’t want to let go of some stuff. Remember, this first step is vital as this is simple yet it can essentially improve your financial well-being.
- Sort out your credit and debts, savings and insurance.
List down all your debts and credits. Check your credit report. Try not to get too overwhelmed as this step tends to get intimidating especially if you have a long list. The key here is to think of the end goal: you will be able to pay off this debts no matter what. Take note of your savings and insurance. If you don’t have any, now is a great time since we are cleaning up your finances. Invest in yourself!
- Create a spending plan.
Keep track of your money. Develop a system wherein it enables you to allocate your income and money accordingly, in order to cover all your needs. It may take a few months before you will be able to master the system but don’t lose heart. Moreover, there are tons of available apps which can do exactly this for you so google away!
- Save, then spend.
Most people, if not all, find it difficult to save money. If you are one of these, try this simple hack. Once you get your allowance, or your salary, or wherever you get your income, determine a percentage of your savings that you will get from this. The amount left is what you will spend. Easy.
- Choose the best people to advise you.
In order to properly guide you in the management of your finance, it’s encouraged to seek professional advice. Try to ask around if your friends or relatives happen to know people who can help you. In this way, steps 1 to 4 will make sense and effectively help you in achieving your financial goals.
Disclaimer: Credit Representative (486927) is authorised under Australian Credit Licence 389328.