It’s a new year! As we all welcome 2018 with open arms and open minds, Globe Finance Inc also encourages you to think about what 2018 means for you financially. Of course anytime is a good time to get your finances in order, but there is just something oh so inspiring about kicking off a new year actively committed to your own financial success! Why not move financial stability to the forefront of your goals this year by checking out some of our tips on how to get the most out of 2018 financially, right here.
Assess Your Situation
The first thing anyone serious about their financial wellbeing should do is to take stock of everything financial in their lives. From income to expenses, investments to insurances as well as the status of your estate planning documents. Take note of what you are currently servicing and compare that to what you would like to be achieving in order to identify any gaps between them.
Set Financial Goals
When you have weighed your current financial status against where you want to be, you can then refine any differences or short falls in order to set clear goals for your financial future. Start with a twelve month plan which can feel more attainable and expand from there as you feel more comfortable. Creating your financial plan should be a key goal in 2018 as this gives you direction and helps to guide you towards your specific targets.
Fine Tune Your Budget
Design a tailored budget just for you. If you already budget, go over it with a fine tooth comb to ensure that it still lines up with your lifestyle. Once you have set your financial goals, a budget will help to keep your spending habits in line with those goals. Don’t be phased by others, or their spending habits-they may not be heading where you want to be.
Make Saving Mandatory
A healthy savings account and emergency fund are mandatory for financial stability-not only do they help to build your credit but they can sustain you in the onset of uncalculated costs, unexpected job loss or health emergencies. Set up automatic payroll deductions to your savings account and emergency fund each month to ensure a consistent savings pattern; it may be hard at first but soon you won’t even miss it!
In 2018, commit to spend within your means. Don’t grab at every ‘bargain’ or even try to fit in with the Jones’. Spending frugally is not about being cheap, it is about being financially smart and successful. Live within your resources and be happy with it-you’d be surprised at how lifestyle habits can hinder long term financial security.
Are you making your money work for you? Where are you investing, if at all? Term Deposits and Registered Retirement Savings Plans are two of the best investments you can make for yourself. A Retirement Plan for example, is one of the biggest, most important steps that you can take for a healthy financial future. Start your retirement plan as soon as you possibly can and save as much as possible. If you already have a retirement fund, contribute even if just a little more than you did last year-one guideline some people follow is to save 15 percent of their income, of course if you are not in a position to do such then you should aim to put away the maximum amount you can while still paying your other bills and obligations.
Learn More Financially
Be committed to learning more about money and how you can make your finances work best for you! The more you know, the more you can help yourself financially-so buy the books, attend those classes and go to every finance seminar you can; the more you learn, the more your independence and confidence will grow. Keep developing your financial knowledge; you never know when some of that knowledge could come in handy.