With the New Year nearly upon us, it is the perfect time to start to consider the progress we have made in the last twelve months, and where we hope to see ourselves in the twelve months ahead. Generally, most people use the New Year to set their goals (or resolutions) that aim to improve themselves or their lives, and many people include financial goals within these plans. However, it can sometimes be difficult to know where to start when it comes to setting your financial goals, and if you have a few areas of your financial situation that you would like to improve, then it can be quite daunting. Which is why we have put together this guide on some of the top tips for setting financial goals in the new year!
Assess Your Financial Situation
First, you will need to assess what your current financial situation is like and decide which areas of it need improving. It is important to be realistic about what changes need to be made, and even though you can’t work on all your finances all at once, you need to be aware of what areas do need improving. You should look through your savings and debts to see what goals you can set looking at the year ahead.
Set a Budget
One of the best ways that you can improve your financial situation is by budgeting. Many of us are guilty of spending more money than we can afford to, which is why we find ourselves in financial difficulty. But by setting yourself a budget of how much money you have for your bills, rent, savings, you will know exactly how much disposable income you have available to spend each month. Budgeting will make a huge impact on your overall financial situation.
Focus on Your Debts
It is essential that you know exactly how much money you owe as part of your debts, and that you manage the situation. Try not to feel overwhelmed by being in debt, and instead cut your debt up into manageable re-payments. While it is important that you do pay off your debts, you should do it at a reasonable and affordable pace.
The start of a new year is a great time to reassess your financial situation and set goals for yourself so that, come the start of the following new year, you have made significant improvements to your life.