New Year's Resolution: How To Make Your Money Work for You

New Year's Resolution: Finances

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1. Make a budget.

MC Squares Event and Budget Planning Bundle

Making budgets sucks!  But so do cramps.  We make do.  

Everyone has a variety of items in their budgets.  

The basics are these: 

• We live somewhere.  
• We eat somewhere.  
• We get around.  

All of these items have associated costs.  This budget planner gives you a visual - an in-your-face - reminder of your spending.  

The easiest way to create a budget is to pick a 30-day period.  Go about your spending as you normally would, while tracking your spending at the same time.

After this 30-day period, put everything you spent in a category.  NO.  MISCELLANEOUS.  Miscellaneous is like a junk drawer - you never know what's there.  Even if it's a one-time purchase, put it in a category.

If you buy lottery tickets, put it in a category: 

• Entertainment 
• Investment (If you win, you may feel differently about putting it in this category.)
• Games  

Diamond earrings: Jewelry, Gift (even if it's for yourself)

Just pick one and be consistent about putting it there.  This will give you an idea of what you are spending versus what you are making.  You can then decide what you need (and want) to put in your budget.

2. Payoff Debt.

Superior Register Account Tracker

Living with debt seems to be the norm.  Tell someone you have no debt, and you may hear crickets......or judgement.  Especially with the current inflation, living within your means presents a challenge.  

Use this register to pay down your debt.  Start with the smallest debt and list them in order of amount, smallest to largest.  This gives you momentum to continue to pay each one off.  

Some will tell you to do it by interest rate.  Truthfully, if interest rates were a concern, would you really have that debt to begin with?

3. Save for an emergency fund.

photo credit: Amazon

Now that you are debt free, why whatever will you do with all of this extra money?!  Reward yourself!  You have earned it.  Pun totally intended!

That payment that you were paying towards debt will now go towards an emergency fund.  Rule of thumb is to start with 1 month, then 3-6-9.  

Depending on the type of income you make - fixed salary vs commission - or your comfort level, you may consider having a 12-month emergency fund.

4. Donate.

photo credit: Uncommon Goods Hand Heart Desktop Sculpture

Being debt free gives you additional freedom to choose what to do with this money.  Donating, tithing, giving.  During times of crisis, it's amazing to watch how we all come together to help those going through the tragedy.  When you give, you bestow that blessing as often as you give.

5. Automate.

photo credit: Amazon - J Mark 100 Coin Roll Wrappers

Now that you have a plan and know how to stick to it, automate it!  

• Pay your bills on autopay.  
• Intentionally save your money on autopay.  
• Humbly give back by using autopay.  

You earn more than you make and this plan will work because of that simple math.

Conclusion

The road to getting your finances in order is a lifelong process.  It takes practice and flexibility.  The simple fact is that there is nothing simple about getting out of debt.  BUT when that fires gets lit under you, watch out!  You will be unstoppable.  Share that fire here!