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New Year's resolutions are
here. Some of us might have pledged to do a little better with their
finances. Let's face it, the state of the economy isn't exactly what
it used to be and you still have dreams and goals to achieve. That
means getting your finances in order. Many people make this pledge every
year, but fail to even get started. Why? They don't know where
to begin. The best way to start is not a budget, like you might
think. Budgets seem limiting. The best way to start is to
create a spending plan. Here are 5 tips to make sure your 2008 starts out
right:
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Get Organized:
Organization is the key to any successful spending plan. You need to
establish a central location to manage and maintain your finances and
then gather all the information you need to create a solid plan.
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Set Clearly Defined
Goals:
Make sure you set goals that are
reasonable and time specific. If you have a goal that will take longer
than 12 months to accomplish, you may want to break it down into shorter
mini goals. This will help monitor your progress.
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Record the Plan:
When you create your spending plan, make
sure you use the most accurate information on your income and current
living expenses. Remember to include fixed, flexible and periodic
expenses. Write your plan out clearly on paper or on the computer.
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Reduce Your
Expenses:
Saving money is only a part of a good spending plan. Reducing
expenses is the other half of the equation. If you're unsure about
the amount of a particular expense, track it for at least two to four
weeks. This will help give you a more accurate reflection of your
overall expenses. Even small expenses can add up. So try skipping
the coffee shop once a week and that can save you up to $250 per year.
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Monitor your
progress:
Make yourself accountable for your budget by spending the time to review
and update it on a regular basis. This can be done using web banking
services, a spreadsheet like Microsoft Money or by using an electronic
bill payment service.
Credit Union of Ohio's
mission is to increase your standard of living and better your lifestyle. If you have a
question or need help in creating your spending plan, please contact our
on-staff financial counselor, Wendy Perkins at 614.340.1729 to schedule a
free consultation. |
