It’s the first day of the year 2014, and if improving your finances is part of your New Year’s resolution, then you’re in the right place.
Who doesn’t want to have a better financial life after this year ends, right?
So without further ado, here are the 10 steps you can do to improve your finances this year.
10 Steps To Improve Your Finances This 2014
- Set your goals
Before you start doing something, you need to know the things you want to improve.
You should list all the things you want to happen or achieve before 2014 ends. Make sure that they are realistic enough, so that you’ll be able to complete it yourself.
- Make a plan
Now that you have set your goals. It’s time to make a plan.
Classify each of your goals and put a deadline to each of them. A good deadline is at the end of the year, so that you could make another set of goals after the year ends.
Write it down on a notebook, or on your laptop’s notepad, for you to be reminded of the things that you should finish.
- Execute your plan
The plan that you’ve made will only go to waste if you would not follow the things you wrote.
Try to do the hardest ones first, and the easy-to-accomplish goals last.
Although, you could do it vice-versa.
Each one of us is different, so just do it the way you’re most comfortable with, okay?
- Set up a budget
Having a budget lets you know where your money goes.
It could also help you be more discipline when it comes to spending your hard-earned money.
If you already had a budget last 2013 but your finances are still in terrible shape, then maybe you should change your budget and adjust it to your lifestyle accordingly.
- Know your limitations
A good way to improve your finances is knowing what you can and cannot do with it.
Well, if you’re a person with too much debt in his hand, then getting more of things you can’t afford is not a very smart decision, right?
It would also be easier for you to achieve your goals, if you’ll only be doing or getting the things you really need to live your life.
- Clear your debts
If you want to improve your finances, then you must eliminate your debts as soon as possible.
Having a huge amount of debt is a big setback to anyone aiming to be financially-free.
If you’re that kind of person who has a lot of debt, then maybe you should assess yourself and know what is wrong with you.
You can’t improve your finances, unless you learn to improve yourself. (Click to Tweet this phrase)
- Save up for something
Saving money should be part of your daily life and a good way to practice it is by having a saving goal.
Let’s say you want to save $1000 a month for your new car or for your child’s education.
The fact that you’re aiming to save for something you want can increase your chances of saving more in a shorter period of time.
Related Post: 10 Must Follow Rules For You To Save Money
The money that you’re able to save may not be used immediately to buy something you want, so why not put it in an investment vehicle until you know where to use it.
Investing is a nice hobby for those interested in improving their finances because it can help them grow their wealth.
Here’s a nice quote about investing from Mr. Carlos Slim Helú.
“Anyone who is not investing now is missing a tremendous opportunity”
– Carlos Slim Helú, One of the Richest Men In The World Today
- Talk with a financial advisor
If you have financial problems that you’re having a hard time to overcome, then try to talk with a financial advisor.
It’s their job to help you with your financial problems.
If you’re lost, they will help you get back on track.
If you’re down with too much debt, they could tell you options to get out of it.
If ever you think you need one, then you should consider reading the article on MoneyCrashers.com about choosing your financial advisor.
Choosing the right financial advisor is critical in getting the change that you want.
- Find out more ways to improve your finances
The steps that I’ve identified here are not the only ways you can do to improve your financial life.
There are dozens more, and it’s up to you to find them out.
I’m sure you’ll be able to do that if you’re really serious and dedicated to improving your finances.
That would wrap it up. I wish you’ll be able to accomplish all of your goals. Good luck and Happy New Year!
Photo Credit: Alan Cleaver and 401(K) 2013