Personal Finance Tips for a Brighter New Year

Another year is fast approaching. We all can have a clean slate, right? Hmm, not really. Many of us will have to carry forward the financial burdens or financial consequences of the past years into 2016. But here are ways to help you design a brighter financial future for the New Year and the years to come.

  1. Make a Finance Journal

Stop those emotionally laden diaries already. If there’s a diary you’ll need to keep, it would be about your finances. Keep track of your spending and your income. This is the start of figuring out where you can improve your cash flow – to ease some disposable money to pay off debt and to make your money grow.

  1. Increase Your Savings

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This requires you to spend less (and earn more). It may feel like you’re depriving yourself, but you’ll know it’s more liberating when you less money problems for the rest of the year. Identify unwarranted spending habits in the past and avoid them. You know drinking water instead of soda not just leans your body; it fattens your wallet, too.

  1. Open a Savings Account

It would really help to automate your savings by scheduling deposits to an emergency savings fund. At payday, make it a point to pay off debt first, purchase the essentials, and then save money. If there’s excess money – think about saving it than spending it on non-essentials.

  1. Negotiate Proactively

Negotiate with your creditors. Negotiate with your vendors. Always find ways to alleviate your financial burden without running from your obligations. Ask for debt consolidation, lower interest, or more feasible payment scheme. Ask for a cheaper product alternative, discount, or promo coupons. There’s nothing wrong about trying to save money.

  1. Limit Credit Spending

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Credit cards are tempting. If you can’t afford something with cash, chances are you can’t really afford it anyway. You may need one card for some purchases, so keep one and ditch the rest. Buy less on credit, and more with cash. This is especially helpful if you can’t pay bills on time.

Face the New Year with hope that your finances will come round. But don’t just dream about a brighter financial future. Plan and take action. You DO have control over your life, especially your financial life.

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