Depending on your point of view, a glance at the calendar these days can elicit one of two responses: relief that 2016 is finally coming to an end, or panic that you have yet to set resolutions for 2017. While goals related to weight loss and health tend to be most popular each year, the hope to get a better hold on finances usually isn’t far behind. If you’re one of the many Americans looking to change their money-wasting ways in the coming year, here are a few quick tips for you.
Have a budget and stick to it.
Perhaps the single biggest personal finance mistake that many of us make is spending without tracking our purchases. Although just striving to keep your bank account in the black may work for a little while, it doesn’t leave room for error, not to mention emergency. That’s why it’s so important to take the time to create a real budget for yourself.
Luckily, this process has now been made less painful as several apps (e.g. Mint, YNAB, and GoodBudget) allow you to set spending limits and will automatically categorize your purchases for you. Of course, you can always keep a spreadsheet of your own as well or use one as a backup. Lastly, if your addiction to plastic is really getting the best of you, try using the old school envelope method where you put cash (yes, cash) into folders labeled with each category of spending. Once your cash is gone, that’s it. You’ll quickly learn what areas you need to work on.