Those who fail to plan are indeed planning to fail. Notice I didn't say they failed because they didn't have the right or the best plan; they failed because they didn't have a plan at all. It's sad to think many people will roll into the next year without giving serious consideration to how they will manage their finances. Doing the same thing will yield the same results. If you're unhappy with your results or would like to improve them, you need to do things differently.
Take control of your money by creating a budget that tells your money where to go instead of wondering where it went. A budget provides the detail you need to meet every obligation while also providing the means to save money and reduce debt. A budget also does the following:
Trying to manage your money by doing mental math will not make you financially successful. You need a written plan that prioritizes saving and controls spending.
While a budget can help you avoid more debt, it doesn't automatically reduce your debt. You need to make debt elimination a priority. No matter what type of debt you have, reducing or eliminating it will make you financially better off.
A debt snowball system for paying off debt works because:
One of the best ways to improve your finances is to make more money. If you last asked for a raise a while ago, it's time. Don't tell yourself you can't! More than 50% of Americans don't ask for a raise, and they talk themselves out of it because they're afraid of hearing "No." The truth is, 75% of the people that ask for a raise end up getting it, so ask!
Increase your income by taking on a side job or starting a side business. There are incredible opportunities available if you're willing to do the work. Make sure you don't use the extra income to increase your lifestyle. Instead, commit to taking all the extra income and using it to improve your net worth by paying off debt, increasing your saving or retirement, or investing in income-producing assets such as real estate.
The secret to financial success is to save first and spend second. Andrew Carnegie used this principle of setting aside a portion of his income before spending anything on himself. He decided early on that he would never use that part of his income or any increase he would gain from it to live on. Instead, he chose to invest that portion of his income, and because of this one decision, he became one of the world's wealthiest and most generous men.
2023 can be the best financial year you've ever had, but it will only happen with a plan. Why not take the last few days of 2022 to make such a plan? Include some or all of the suggestions above to increase your success.
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Christmas Joy without Financial Misery
Ending your Year with Gratitude