Happy New Year!
It’s that time again, when we make those hastily-planned (and rarely-executed) resolutions, and promise that this time we’re going to do better.
There’s the obligatory “lose the holiday weight” resolution, and maybe something a bit more crazy, like finally climbing Mount Everest. And we never seem to make the time.
So this year, why not make a resolution that will really make a difference by improving your finances in 2014?
Here are some simple steps to get you started:
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Check the numbers. How will you know if things need to improve if you aren’t even sure how much you have or need? Take an afternoon to find out how much money you have in the bank, how much you bring home each month, and how much you have to spend on bills. If you don’t know, spend January keeping every receipt, or use a program like Mint or Quicken to help you track your spending.
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Decide what you would like to change. Are you spending more than you make? Do you have an emergency fund of at least six months’ worth of money? (Or at least two months’ cash and a supply of precious metals you could convert in a medium-term crisis?)
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Now that you know your weak areas, fix them. It’s too easy to ignore problems — but you may wake up and find yourself in a deep hole.This solution should have small, concrete goals. For example, an unrealistic goal would be to never eat out again. A more realistic goal would be to only spend $50 on fast food, and to keep that money in an envelope in your glove compartment. When it’s gone, no more fast food.
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Write down your goals. And keep them where you’ll see them frequently. Alternatively, you could recruit a resolution buddy, someone you trust who can help you stay on track.
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Determine your precious metals investment strategy. Do you want to try dollar-cost averaging? Do you have certain pieces that you want to collect more than any others? Is it time to diversify? Set your priorities, and make a plan for the year ahead.
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Adjust your goals as you go. If you start with a goal — like cutting down on fast-food — and it seems a bit too hard to maintain, adjust it rather than just giving up. Maybe spending $50 a month was unrealistic. Try $75 a month instead.
This year, you can do it. We believe in you.
By improving your financial situation today, you will be set up for a happier tomorrow.
What are your financial goals? How do you make sure you achieve them?
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