The new year always brings a lot of changes with it. It’s an opportunity for growth and self improvement. Think what you will about new year resolutions, but it’s a great chance for you to do a little self evaluation and see where you can improve yourself for the coming year. Most new year’s resolutions revolve around fitness and weight loss, which is always a great goal. But there are other parts of your life that could use a little bit of trimming for the start of 2018.
Set a budget
The holidays usually end in a frenzy of spending, leaving your wallet unintentionally empty. Don’t let yourself get down about this. The start of the new year is a great chance for you to reevaluate your spending habits. Even people who think that they’re great at managing their money can look at their personal finances, and be surprised at how much of their money goes to unnecessary and frivolous things.
The first step to trimming your budget, is to calculate your necessary expenses in a given month. Things like rent or a mortgage, gas, utilities, and groceries are non-negotiable expenses. Things like eating out, going to the movies every week, and shopping sprees every other month are things that can be removed from your spending.
Trim it, but don’t trim it too much
Don’t go crazy with the expense eliminations. Yes, you don’t need to eat out for dinner every single night, but you shouldn’t restrict yourself to never going out to eat ever again. Making resolutions like this are hard to keep, and will leave you feeling sad and like you’re making unfair sacrifices. It’s best to start small and then remove more later on once you’re used to the new budget. If you take out too much in the beginning, it’s more likely that you’ll give up.
Replace expensive things with cheaper options
The new year is also a great time to reevaluate some of the constant bills that can’t be removed from your budget. Can your auto loan be refinanced? Do you spend a lot more on electricity than you should? Do you throw out a lot of your groceries because they go uneaten? Even if you’re making small changes to these areas of your budget, these small changes will stack up and end up saving you a lot of money.