Four Ways to Have a Better Financial Standing In 2020

Every beginning of the year, there is always this New Year’s resolution. One of that is to have a better financial standing in the present year for whatever short-term or long-term purpose in mind. But how have you been doing in your last year’s goal, which is still the same? Do you have those sizeable savings now, or are you still far from your goal? Well, if you chose the latter, then better read on for these necessary yet essential steps to get you motivated to work on that financial freedom goal.

Know the Purpose of Saving

When you save, there will always be a goal.  The goal might be for retirement, traveling, buying a new car, a home, or to achieve financial freedom. Motivate yourself to do this. Dream about the day this will happen. The day you attain financial freedom, you can do whatever you want without worrying about the money you spend.

Create a solid goal, make a concrete plan, and consistently stick to it all the time! Daydreaming of that day is not enough. You should act on it to materialize it. Make your dream achievable by working on it. So, go ahead, move, and take action as you daydream because reality is much better. Knowing and seeing the results of progress is infinitely more satisfying.

Make Peace with your Debts

Becoming debt-free is sometimes unrealistic. But how can you be financially free if you have debts? Tackle and make peace with your debts first. The thought of it can be daunting, especially if you have maxed out all your credit cards, and it has a growing interest. But please condition yourself and focus on the goal ahead. Try using the snowball effect in paying your debt.

Yes, it is not fun at all, but this is a critical step to take. Make a debt budget plan and pay them quickly. The faster you can get out of debt, the sooner you can achieve your financial freedom goal. Most of all, do yourself a favor by using cash instead of using your credit card!

Have a Budget Plan

The importance of having a budget plan has been reiterated over and over. But most of the time, no one cares or bothers to stick to it though they have one. Yes, temptation drives humans most of the time, especially if the word SALE is flashing. But if you are serious about having a better financial standing this year, you will stick to your budget plan. A good budget plan will project what spare money you can use and what you have to save.

Start by listing your income and expenses. Categorize all your expenditure and analyze. From here, start cutting back all the necessary things. This includes costs such us useless subscription or membership, or a 5-dollar coffee every morning. Most of all, procrastinate first. Do you need to dine at a five-star restaurant or renew that gym membership you seldom use?  Do you need that dress now? The question is endless, and you have to choose and decide wisely.

Start Saving

Now that you have a clear goal, promise yourself that you will take action with your debts and budget plan. It is time to save, to set aside some cash for your needs. In your budget plan, leave a specific amount for savings. Do not touch it even if you need a phone badly. Remember that the amount is for saving and saving only.

Follow your saving allocation. Also, save for different categories such as for long term and short-term goals. Save also for unexpected situations or emergencies such as when your car needs to be taken to a mechanic, a sudden medical expense, or extra travel expenditures.  Always remember your goal.

The sooner you can follow all these steps, the sooner you can achieve your goal.  Keep in mind that the better financial standing you have, the more opportunities are available for you to take.  So remind yourself every time to keep track of your spending and focus on your goal. Don’t we all wish to have that financial freedom? Though it looks hard to achieve, it becomes easy if you keep striving and stick to your goals!