As in control as we think we are of life, there are just some things we can’t and aren’t prepared for. Finances, however, don’t have to be one of those things.
How you spend, save, and invest your money is crucial to focus on this year if you want to grow personally and professionally.
Wanting to make intelligent financial moves is one thing. Actually making them is another. You’ve probably got the former down if you’ve read this far. We’ve got you covered with the latter.
Check out these five financial moves to make this year to move toward financial security and wealth.
Lead Your Financial Education
Our finances aren’t going to work themselves out. Rather, we have to take control of our finances. Taking charge of your financial education is the first step.
Continue growing your financial literacy. Learn new tips and tricks for budgeting. Follow financial experts. You could even explore working with a financial advisor to learn more about money management.
Also, educate yourself on trends in investments like cryptocurrency and blockchain technology. The media makes it easy to learn about the next best investment. But it’s important to note that the media has a significant impact on how people approach this new wave of investing.
For example, when companies make headlines for negative reasons, it can sway investors to sell their stock. Or how about social media’s influence? There are ongoing conversations about particular stocks or companies happening all the time on these platforms.
It’s best to avoid blindly doing what other people are doing when investing and improving the rest of your finances. Do your own research and make the best decisions for your unique situation.
When you take control of your finances and your money literacy, you’ll likely come across financial apps and tools that can help guide your journey. Take advantage of them.
Take Advantage of Financial Apps and Other Tools
Our smartphones have transformed the way we live. They’ve made almost everything accessible on the go, including our finances. Leveraging financial apps and other tools on your smartphone can boost your finances this year.
Banking apps are an excellent example of a digital financial tool to take advantage of. With them, you carry your bank in your pocket. You can make deposits, transfers, payments, and even open accounts on mobile banking apps.
Additionally, you can set these apps up to alert your phone when you’ve overdrawn your account or something out of the ordinary is happening on it—giving you even more control over your financial decisions.
Just be sure to pay attention to security when engaging online and on your tech devices. There are so many ways your financial and personal information can be compromised online. So make sure your passwords are strong, don’t open anything that looks suspect, and do your best not to open your financial apps and tools while using public WiFi.
Ultimately, financial apps and tools can help you manage your finances. When your financial situation is organized and under control, your relationship with money improves.
Work on Achieving Multiple Sources of Income
A better relationship with money can lead to a more open mind regarding how to grow your income. Multiple streams of income are essential. This year should be all about building them.
Work on the next level for you. If you have one source of income right now, work toward a second one. If you have two, work at securing number three, and so on.
Lean on your interests and business knowledge for your next source of income. Research how to make it happen. Create a detailed plan for how you’re going to pursue it. And get started.
By taking steps to improve your financial situation, you start to see the possibilities, especially with growing your income.
As you open up your income opportunities, it’s essential to lean even more into saving.
Commit to an Uncompromising Savings Plan
“You never know what tomorrow brings, so spend it all today.” This might sound good to some people. But if you want to be financially secure and independent in the future, ignore this and commit to an uncompromising savings plan.
Bolster your emergency fund. Keep striving for a comfortable retirement. Put away 6-12 months of living expenses. Don’t forget about saving for a vacation, the kids’ college funds, and anything else you want to pursue in the future.
Revisit your budget or create one to start saving consistently. Then, allocate amounts to each savings goal and use automatic transfers when you get paid. And don’t let up.
As your income grows, your savings obligations should too.
Learning to save and adhere to a budget will also help you pay off your debt faster.
Focus on Paying Off Your Debt Completely
Can you imagine life without any debt?
Unfortunately, most people aren’t ever going to know what it’s like to be debt-free. Those that are fortunate enough to experience living without any debt will tell you unanimously that you have to commit to paying it off.
The longer your debt sits, the more you’ll have to pay in the long run. So, sacrifice now so you can enjoy a debt-free life later.
Sit down and list all of your debt. Then, choose a specific strategy to start paying it down, like the debt snowball method, the debt avalanche method, or the savvy debt payoff method. Whatever helps you fast-track paying off your debt, do it.
Bettering your finances is just as much a mindset thing as it is a taking tangible steps thing. So, manage your financial stress, too. Don’t allow it to get the best of you.
Instead, focus on how you’re taking steps to improve your situation. Of course, it will take time to achieve true financial security. But the more you work at it, the easier these five moves will be, and the rest of the concrete steps you take to finish the year on a financial high note.