The new year is looming – it’s closer than you think. Is there any way at all that you’re going to get your finances back on track before January? Yes. Believe it or not, even during the biggest spending months of the year, you can get back on track. Let’s take a closer look at how to get your finances back on track by January.
Know Where Your Money Goes
Look back over your bank statements and discover where all your money is going. If need be, track your expenses to see where you spend cash and what you’re spending it on. This can be a very eye-opening lesson.
Once you know where your money is going, cut any unnecessary expenses. The truth is we all have something we can cut out or, at least, cut back on. For example, many people are cutting their cable and satellite bills. Others are switching to pay-as-you-go cell phone providers. There are so many ways to cut expenses.
Also, during the months of November and December, you want to look for more areas to cut back so that you can afford the holidays without having to use credit cards and getting into debt.
Pay With Cash
It’s so much harder to hand over cash than it is to use debit and credit cards. For the rest of the year, choose to only use cash. You can even start using the envelope system so that you only have a set amount of cash to spend on each variable expense. More importantly, pay with cash for all your holiday expenses. No one wants to be paying for Christmas this time next year.
Do Odd Jobs
You know you’re going to be spending more money during the moths of November and December. Not only are there the holidays to worry about, but you also need to worry about heating costs, insurance premiums, and other seasonal expenses. If you have the time to take on odd jobs, the extra money can be used to pay for these seasonal expenses.
Rethink Christmas Gifts
Get together with your family and extended family to determine a better way to do Christmas. Instead of buying gifts for all the adults, focus on the kids in the family. The adults can then give each other “free” gifts. For example, you might give the gift of babysitting for your sister once a month throughout the next year. This will greatly reduce the amount of money spent at the holidays.
Start Saving Now
Take any extra money and start a savings account. For example, if you get a Christmas bonus, use that money to open a savings account. Wouldn’t it be nice to start the new year knowing that you have money in the bank?
You don’t have to start the new year on the wrong foot. Start working now to get your finances in order so that the new year can be financially successful.
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