Ditch the half-hearted resolutions in favor for clear, achievable financial objectives…
That time of year is upon us – a season of festivities, indulgence and the promise of a fresh and bright New Year. However, for many of us, this time of year is a difficult one. It can be one of debt, overwhelming pressure to spend money, and doom and gloom as another year of financial hardship beckons. What can be done? Here, we look at how to reverse the cycle of spending, debt, and guilt – to unleash a brand new you in 2019.
Step 1
Stop that spending, right now. A typical household will spend over $128 at this time of year than on other months. It is time to stop. Cutting out your spending should begin now. Try and shake off the pressure of buying a present for everyone that buys you a present. People WILL NOT be offended and may even thank you, as that means they don’t feel pressure to buy you a present next year.
Cosmo suggests reigning in what you spend on food; it is very easy to overbuy when it comes to the big festive lunch. You don’t need to buy the big brands, for instance and the budget varieties taste the same. Make sure you don’t go overboard on decorations – try charity shops and budget brands online instead. These sacrifices are small, and WILL NOT ruin the holiday season in the slightest. Yet they really can make a big difference to your pocket.
Step 2
Draw up a spreadsheet. You can’t guess your outgoings, so start off with a spreadsheet and write everything down that appears on your statements. Don’t forget all those extra top-up food shops you do throughout the week, either. Clearly note your incomings and outgoings and figure out what the difference is. This can give you a clear indication of your financial position.
Step 3 – Consider your savings carefully. It can be difficult to save money when the cost of living is so expensive. However, by drawing up a savings plan in advance, you might be able to find a way to stick to your savings objectives more easily. There are many schedules or plans you can find online that aim to help you do this. For instance, try the 52 week saving plan. By following the guide for the annual savings challenge, you could save thousands in one year.
Wonga says, “The 52-week savings challenge is an excellent way to slowly grow your commitment to saving, which is something that doesn’t come naturally to us all. Following this challenge provides South Africans with a realistic and achievable way to save money, even in our tough economy and at the leanest times of year.”
This could really go a long way to paying off a bill, or settling education fees.
Step 4
Don’t give up. Remember it is never too late to re-vamp your finances, even if you think you are in a right mess. You can get financial advice and draw up a plan that allows you to pay down your debts and regain control of your money.
