For sure, "Save more money" and "Spend more wisely" is part of your new year's resolution for 2016. Even if its not directly about saving, it is somehow still connected to the things we want to achieve for the coming year.
But, does this "resolution" included in your list every year? Do you find yourself struggling to attain your goals but find yourself still broke and gained zero financial knowledge? Maybe all you need to do is start with small steps and begin from where you are right now. Here are some more concrete tips in achieving your #MoneyGoals2016:
Evaluate yourself: Spending vs. Saving Habits
List down the things you bought, how much they cost and if they were really worth something. Sometimes, we tend to forget to budget our money when we have many to spend.
Are you always:
- Riding a cab instead of taking the train?
- Buying fashion fads that will be out of style next season?
- Eating out on fancy restaurants almost every single day?
- Upgrading your gadgets everytime a newer version becomes available?
Once you've realized where most of your money has been going, you begin to realize that these "little" things, "little" expenses, "little" luxuries in life are accumulating and eating up a huge chunk of your money.
Why didn't you achieve your goals last year?
After listing down the things you consider useless, spending-wise, you need to think the other factors that contribute to it:
- Are you underpaid? Do you need to find a new job that pays right?
- Should you invest more in your skills development and learn new things?
- Did you blow up all your savings for that trip? Or that bag?
- Are you having a hard time sticking to your budget?
Baby steps is key.
Start small. It will be useless if you set big goals that can't be actually done in a year. It is important to know your threshold. Sometimes, depriving yourself just to stick to your goals will eventually take its toll on your unhealthy budgeting and spending. Bigger goals seem to be more achievable when its broken down to smaller milestones.
Here are some examples:
- You will cancel your gym membership and newspaper subscription.
- You will create a budget that determines how much you're allowed to spend on food, transport, shopping and entertainment each month.
- You will go grocery shopping every Sunday and cook at home at least three times a week.
- You will tidy up your resume and apply for at least five jobs each week.
- You will have no more than one alcoholic beverage each time you go out.
Remember your Why
Why are you doing this? Why do you have goals? Early retirement? A trip? Your wedding? When times get rough, it is always motivating to be reminded of the reasons we have in making such bold decisions in money. Thinking that after all these sacrifices and effort to save, you will enjoy your reward in the long run.
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