Spending here and there—that may be how your 2012 came. Now you’re not too happy about and resolved to do better in the incoming year.
With 2012 coming close to an end, it’s a good time to think about how you will be organizing your finances in 2013.
(*)Indentify your spending. Typically, when we spend our money, we tend to not look back at the details of the spending. We only remember the big purchases we did, and seldom the small ones. When we tried to sum up all our spending, we find ourselves short to a few dollars. Where did the money go? This coming year, apply the principle of writing down EVERY penny you spend.
This should include all cash, check, debit card, or credit card transactions. This will help you identify where every penny goes. And not only that, you get to pinpoint the impulse purchases that even at their tiniest cost can sum up large when done frequently. Remember that even the littlest things add up.
(*)Be a sensible spender. Being wise with our finances also means to be committed to our budget. Whether you are aware or not, our splurges take out a huge part of our budget. We spend on things we want and not on things we really need. It’s not really advisable to never ever spend on splurges but if we want to organize our finances better, we need to take control over our spending.
Learn to weigh out your decisions when spending. Do you really need it? Or maybe you can live without it for now? Set a time in the year when you can allow yourself to spend on your splurges, but on a limited manner. Thinking about November or December, maybe?
(*)Budgeting should not only be for you. If you have kids, it’s about time you teach them about being wise in spending. Budgeting is never really taught in school, and when they come home and turn on the TV, they are bombarded with commercials that tell them to hanker this and that from their parents. You can begin teaching them how to identify their wants from their needs. That way, you gain control of the matter.
Teach them the importance of saving and how you too are saving yourself. You can allow your kids to see your budgeting approach and can offer them to play a part of it. You can try to give them an allowance to teach them how to manage their money and take responsibility to it. Incorporate in some of your creative ideas to make their saving fun and challenging for them.
(*)Reduce your debt. Spending is made so much easier with credit. And with all freebies and discounts credit cards offer, who can resist it? You should. Consumer Reports in 2011 suggested that 14 million Americans still pay of their bill from their 2010 holiday credit card spending. Have all those 14 million Americans have paid off all of those by 2012? We sure hope so. But back to the point, spending on credit card should be done wisely.
The interest rates can soar real high if you are unable to resolve your debts by the time they are due. In plain words, credit card allows you to spend more that what you can actually afford at the moment. And that can cause huge bruises on your savings and budget. You need to realize how tight it is to budget for something that’s really out of your budget. This year, take new steps to redeem yourself from credit card debts.
There are financial boot camps online offered for free that you can try out yourself. Once you have decided on a strategy, you better commit yourself to it until you are released from debt. Include in your budget the amount you will need to pay of the bills. and from time to time, remind yourself to get your hands of those cards until your debts are all cleared, and when that happens, be wiser the next time you use your card. Remember to never over-spend.
Lastly, what is most important in organizing your finances is by reminding yourself to just do it. Procrastinating should never be in your vocabulary when it comes to matters such as this. You are doing a lot in changing your life by changing the way your finances look. Go ahead. You know you can do it.
Author Bio;
Mackenzie Salis is a freelance writer, a professional blogger and an enthusiast advocating finance awareness via online exposures for 3 years. She is the author of the site: OnlinePaydayLoansGuide that can provide all valuable information about loans and warn you against fraud online.
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