The new year is a time for resolutions and fresh starts. If one of your resolutions is to get your finances in order, you're in luck! In this blog post, we will discuss financial planning tips that will help you get started on the right foot. By following these tips from experts like Scott Tominaga, you can set yourself up for success in the coming year!
1. Make a budget and stick to it.
One of the most important steps in financial planning is creating a budget. When you know how much money you have coming in and going out, it's easier to make informed decisions about your spending. There are many ways to create a budget, so find one that works for you and stick to it!
If you're not sure where to start, try our 50/30/20 budgeting method. This approach divides your income into three categories:
-50% for necessities like housing, food, and transportation
-30% for wants or discretionary spending
-20% for savings and debt repayment
Once you have your categories set up, track your spending for a month to get an idea of where your money is going. From there, you can make adjustments to ensure that you're staying on track.
Another helpful tip is to automate your savings. This way, you can make sure that you're always putting away money for the future without having to think about it. You can do this by setting up a direct deposit from your paycheck into a savings account or by transferring money into savings every time you get paid.
2. Create savings goals and make a plan to achieve them.
One of the best motivators for saving money is having a specific goal in mind. Whether you're aiming to save for a down payment on a house, a new car, or your dream vacation, setting aside money each month will help you reach your goal sooner than you think!
To make saving easier, set up automatic transfers into your savings account or create a budget with specific line items for your savings goals. This way, you can make sure that you're always putting away money for the future without having to think about it.
If you're not sure how much you need to save, start by setting aside $50 from each paycheck. Then, increase your contributions as you get closer to your goal.
By setting aside money each month and sticking to your budget, you can achieve any financial goal!
3. Invest in yourself by taking courses and learning new skills.
One of the best investments you can make is in yourself! By taking courses and learning new skills, you can set yourself up for success both professionally and personally. Not only will you be more marketable to potential employers, but you'll also have the satisfaction of knowing that you're constantly growing and expanding your knowledge base.
And there's no need to break the bank to invest in yourself. There are plenty of free or low-cost resources available, such as online courses, library books, and community education classes. So get started today!
By following these tips, you can set yourself up for a successful new year! What other financial planning tips do you have? Share them with us in the comments below!
