Right before the ball drops, many of us take out a pen and paper and try and nail down a few resolutions for the new year. If one of your resolutions for 2012 is finance related here are three simple tips to help you succeed.
Track Your Money
LifeHacker, which hit one out of the park in a recent article about talking with a friend or family member about creating a budget, boiled down the concept of budgeting down to making sure you have more coming in than going out. The first step to changing your financial habits is to start tracking. You can track your money a number of different ways, but I am biased towards a friendly personal finance manager called CheckBook Pro.
Cut Back In Multiple Areas
Like crash-dieting, it can be tempting to set unrealistic financial goals. Deciding never to go out to eat again or not to buy anything beyond the bare essentials may look amazing on paper, but often prove unachievable in practice. Instead, look at your bills individually with a critical eye. Can you exist with a few less minutes on your cell phone plan? How about one less night out this month? Spreading your financial cuts across several areas of your life will make the changes less noticeable and therefore less painful…making it more likely that you will succeed.
Ask Friends or Family for Support
People are social creatures. Just saying your goal out loud will increase the odds that it will turn into a reality. Let your friends and/or family know about your financial goals. While talking about money can be similar to talking about farts, it doesn’t have to be rude if you approach the topic in the right way. Many of us are sensitive about our financial decisions, make sure your friend knows that this goal is about you…and not some backward way of letting them know that you think they need to change. Be solution oriented when talking about your goals. For example: ask your friends or family to get together and make meals in bulk and then freeze them. Don’t just complain about money. This only leads your friends and/or family to worry about you.
Bonus Tip: Get Back Up!
New Years Resolutions are often broken. While its fun to start the year with some exciting ideals, remember that you are only human. If (or most likely when) you slip up in tracking your money, or in finding areas to make the cuts, or if you have trouble finding the support you seek…Press On! Change doesn’t happen overnight, but with persistence and determination your financial goals can and will be realized.
Happy New Years from all of us at Splasm Software!!!