The new year brings with it a sense of renewal and energy, as people right across America return to working life after the holidays. Among the most common resolutions for the twelve months ahead will be managing money more effectively.
So many ordinary people nationwide are seizing control of their finances, with a view to better structuring their income and outgoings to deliver a more prosperous 2014. Managing your money more effectively in 2014 can leave you with more disposable income, less debt, and an all-round stronger financial position. But what tips should you follow to keep your finances in check this year?
The first thing you should do ahead of trying to manage your money in 2014 is to think about your current circumstances. Many people don’t have a written budget, instead choosing to run their finances mentally.
As Mark Weinberger CEO, or any other business leader would testify, this is a recipe for disaster. If this sounds like you, you are already missing out on the potential to tighten things up, and you need to quickly adjust your approach in order to cut out wasteful expenditure and feel better off immediately. Write down all of your essential expenditure, and work out how much disposable income you have left for other things. The more tightly you control your spending in this way, the more opportunities you will discover for savings to be made.
If you hold credit card debt, you can take advantage of the turn in the year to secure better terms on that debt. Many credit card providers offer 0% balance transfers, particularly at the start of the year, for borrowers looking for a better deal on their current credit.
Rather than paying the current hefty double-digit interest rate on your credit card, shifting your balance to a promotional rate card can help save you money. This means more money in your pocket, or clear daylight for you to start paying down the capital. Either is a tremendous advantage, particularly for those with large credit card borrowings, and this can be used to achieve better financial results through the new year.
Any debt you do have should be paid down as quickly as possible, in order to give your finances a better chance in 2014. Start with the most expensive first, and pay as much of your disposable income as you can afford to reduce this amount.
This will reduce the overall interest costs you pay, while reducing your monthly repayment burden into the future. This will enable you to start planning more effectively for the new year and beyond, with a more robust personal balance sheet than before.
Managing your money effectively is a staple of maximising your earnings potential. For as long as there are gaps in the management of your finances, you stand to miss out on the optimum balance of your income and expenditure, leaving you with less money than you deserve.
Instead, by deploying these strategies within your current financial set up, it can be possible for you to manage your expenditure better, while ensuring you get the full advantage from the income you receive.