Start the Year Off Right


How to Start Your Financial Year Off Right

The New Year is almost upon us. Here are a few tips to make 2019 the year you take control of your finances.

Take 15 minutes this week and put together a budget. This isn’t a difficult chore, however having the truth in front of you may be a hard pill to swallow. JUST DO IT! This is the first step to changing your finances and taking control of your financial future. Simply write out on a piece of paper your fixed expenses (i.e. rent, car insurance, cell phone bill) and your variable expenses (i.e. groceries, fuel) and see where you end up. This will give you a basic idea of how much your planned expenses are each month. Nowadays there are many online budgeting tools that can help you with this.

Using the budget you just created, automate your budgeting. Set your accounts so that they are connected according to the budgets for each of your planned fixed and variable expenses, include savings in here too! Once you get your budget automated set a weekly reminder on your phone to sign into your account for 5 minutes to check on progress and make adjustments as you go. Then only use the corresponding account for that particular expense, once it’s gone, it’s gone until the next month.

Do you have a black hole that sucks out a vast majority of funds each and every month from your budget and you’re left wondering where the money went and what happened? We all have that one area that is our weakness. It could be shopping, eating out, entertainment, having to get the latest and greatest new toy. First determine what your spending black hole is. Once you have, tackle the behavioral issue the old fashioned way, with an envelope and some cash. At the beginning of each month take out the fixed amount you’ve budgeted for whatever your weakest spending area is. Each day you take out however much you will need that day and that is all you have to spend. Once the money is gone you better hope the month is over!

Most people trust that their financial advisor has their best interest at heart. Most people don’t know that their financial advisor has an obligation to do what they can so that the financial institution can profit and you are left with all the risk. Learn how to take control of this aspect of finances by educating yourself in the stock market. The Mastering the Markets program is beginning in the New Year and this is the perfect time to take action.