Most people’s New Year resolutions fit into a few neat categories – eat better, exercise more, drink/smoke less, or, the ever popular, get on top of your finances.
If 2006 is definitely your year for doing this (and you’re still keen a few weeks on, a good sign), then we’ve got some tips for you.
The simple sum for making your money work for you is don’t spend more than you earn. While that’s so straightforward it almost sounds stupid, you’d be surprised how hard this is to stick to. After all, with credit cards, hire purchases, loans and overdrafts it’s not exactly like you have to live within your means in a purely technical sense... Is it?
If your bank account is back in negative just days after you’ve been paid then skim over this list of suggestions to help you get your finances under control. It’s by no means exhaustive, but should give you some tips to get started.
Before you begin it’s good to think of some goals to aim towards. Whether you want to buy a house, head overseas or just pay off your car loan, by giving yourself a target you’ll be more focused and motivated to keep on track.
The next step is to work out a budget. You need to be realistic and honest about this. If you can’t get by without your full Clinique skincare regime then you need allocate funds accordingly. Don’t skim over things like clothes or entertainment. Think carefully about how much you realistically can spend and make sure you stick to that limit.
Once you’ve allocated your spending you can work out how much you have left to save/ use to pay off debt.
If your credit card is out-of-control and you’re serious about paying it off, then leave it at home – I’ve even read you should freeze it in a block of ice, so you really can only use it an emergency.
Withdraw the cash you’ll need for the week, that way you can’t spend what you don’t have.
Get smarter with how you spend your money. If you pay for a gym membership you never use then look into cancelling it. Only buy what you need at the supermarket so you’re not throwing out spoilt food. Preparing your lunch at home will save you heaps of cash.
Before you take on more debt think really carefully about it. Do you need that flat screen TV right now? Is increasing your overdraft for a new computer really necessary? Try to avoid making spur of the moment decisions. That top may look hot, but leave it in the shop for a day or two so you can decide if you really need it.
Do a bank account audit and make sure you’re not paying unnecessary fees on accounts you don’t need. Also make sure you’re taking full advantage of any deals your bank offers – if you’re a student check out the banking packages designed just for you.
Sites like www.sorted.org.nz have heaps of info for dealing with all things money related. If you want to get serious with your budget then check if your computer has MS Money on it, alternatively develop your own budget template in Excel.
Most people’s New Year resolutions fit into a few neat categories – eat better, exercise more, drink/smoke less, or, the ever popular, get on top of your finances.