You can do some simple things to help get you on the right track for the coming year and years to come.
Create a budget
If you don’t have a budget, it’s time to create one; if you do have one, it is time to review and adjust. Knowing what you have coming in versus going out each month will help you understand how much discretionary income you have for things like shopping and travel. It will keep you accountable for your spending and set your priorities.
You can use an Excel spreadsheet or an app to help you create your budget. It doesn’t have to be complicated; make sure you include all of your expenses.
Review your recurring expenses
With so many streaming channels and subscription services, it can sometimes be easy to forget which ones you don’t use anymore. Go through your statements to see what recurring charges you have. Cancel any subscriptions that you aren’t using or that you don’t need.
Increase retirement contributions
Go into next year with a focus on the future. Look at how much you are contributing to your retirement. Can you increase it by 1% or more? Any amount you can add to your retirement savings now will help you have a more comfortable life later.
Get a handle on your debt
Focusing on paying off debt is an integral part of getting your finances in order. It might be overwhelming to think about all the debt you have, so take it one step at a time. Start with any high-interest debt you have, such as credit cards, and put together a plan to start paying it off. Making payments on interest is never the best use of your money.
Take some time to learn something new, whether about investing, budgeting, or anything financially related. You can do this by online research, listening to financial podcasts, reading books, or working with a financial advisor. Knowledge is power, and it will give you confidence when it comes to your finances.