Three steps to rework your budget for the new year
Budget Resolutions for the New Year
18:10 30 January 2014
The New Year always brings hope and fervent wish that the coming year will be a more agreeable one. Resolutions are rife with sincerity and fervour to do better and aspire for higher things most especially on the financial aspect. You could be expecting major changes in your life this year such as getting married, having a baby or having your own house. These things would certainly cost much and will need a lot of rearranging in your finances that will call for sensible budgeting.
Whatever you resolve to accomplish this coming year, wiser spending habits can help you make things happen. You can start with the following changes in your budget.
1. Review your source of income and expenses list
Based on the list that you will draw up, you might have to do a whole new budget. Everything has to be listed down: for income - take home pay, overtime pay, part time job, grants, etc.; then for expenses – rent, transportation, credit card payment, utilities, etc.
2. Define your financial goals.
Listing down your goals can keep you on track. Are you saving for a trip overseas? Are you saving for a down payment for a home? Or have you finally realized the importance of having an emergency fund? You can also make it a goal to lessen spending and channel everything you save to investment. Vis-à-vis the goal, indicate the amounts as well the timeline for you to achieve your goals. Saving will be more real to you if you have a definite and concrete idea of your deliverables.
3. Be aware of late or non-payment charges
To avoid paying more than what you have to in terms of penalties and interest charges. You should be aware of all the due dates of your payables such as credit cards, banks, internet and mobile phone providers. Pay your dues promptly because late or non-payment of your dues will surely incur unnecessary charges and may negate all the hard work and belt-tightening activities you have imposed on yourself.