Finances are so important that 44% of us make them part of our New Year’s resolution.
We want you to succeed financially this year, so here are our top five tips to change your money matters this year.
Tip 1: Learn From Your Past by Doing an Annual Review
Your past contains many lessons. It could be something about your career, relationships, or your finances.
Reflecting on the past year can help you to see how you managed your finances and teach you valuable lessons to use in the future.
Do Some Introspection
It can be painful, but you need to think back to your past financial situation.
As an individual, reflect on these questions:
What part of your finances worked out according to plan?
What aspect of your finances didn’t work out at all?
Did you stick to your budget?
Which areas resulted in overspending?
Which areas resulted in savings?
If you have a business, then answer the previous questions plus the following ones:
Which product or service was the most profitable?
What area of the business experienced the greatest financial growth?
Which department required the most financial capital?
These questions should prompt your thoughts and help you to explore your finances more. Use it as a process of discovery and don’t shy away from the ugly bits.
Check Financial Documentation
As you review your past year, it could be helpful to obtain some financial documentation for the past year. Use your bank statements for personal finances or financial statements if you have a business.
Go through your documentation; classify your income and expenses into categories just like an accountant would do; and then, look for areas that don’t seem right.
Determine why you are spending more money on certain things, especially if you can’t remember spending that much. Also, look out for areas where you could increase your income.
Achieve Financial Security
Every one of us wants to take care of our families without worrying about where the next dollar will come from. We want to tell you that this is possible!
All you need to do is change your thinking. Your brain is your biggest tool for success, so join us at the Brain-A-Thon to learn all the secrets for success.
Tip 2: Practice Awareness and Analyze Your Current Situation
All of us work hard to make money because we seek financial security. You don’t want to worry about where the next paycheck will come from or whether you can pay a specific bill.
Looking back on the previous year helps you to ascertain what happened in your finances. Now, you have to take the next step and consider your current financial situation.
Get a Financial Snapshot
Businesses use a balance sheet to show their current capital, debts, and any money owed to them. Whether you are an individual or have a business, it helps to create a balance sheet, as it shows the reality of what is happening with your money.
Write down all the places you owe money to and the amount owed.
Write down how much money you have in different accounts.
Compare these amounts with each other to determine whether you are in financial trouble or doing okay.
Be Critical About Your Finances
Don’t feel disheartened if things aren’t going as you want them to. You are already taking the steps to change your situation, and that’s what counts.
Review your budget critically to see what is happening. At this stage, don’t necessarily see it as what you want it to be. Simply write down all the current expenses, incomes, and ongoing debts.
Now, compare your current situation with your ideal budget. Look for any discrepancies and large areas of concern.
For example, you can’t pay $500 of debt monthly if you only have $300 available. These are the kinds of things you need to know about to take action.
Tip 3: Create a Financial Plan
After considering your past mistakes and current situation, you are now in a better position to take control of your future. It’s time to make a plan to do better.
Set Financial Goals
Start by creating goals for your finances. Think carefully about what you want to do with your money this year and in the future.
Here are some examples:
Save $2,000 for a holiday at the end of the year
Decrease spending on groceries by $500 this year
Pay $5,000 of debt throughout the year
All of these are great intentions, but you need to plan how that will work for this year. Your goals should be realistic and reasonably easy to achieve.
Write down your dream goals and see how they can fit into your current budget. It will be a process of back and forth until you figure out exactly what can work for you.
Create a Budget
Draw up a budget for 2022. You should even include January, as you can still make a change in your finances for the rest of the month.
It helps to use a spreadsheet for budgeting. Alternatively, you can use an accounting program or an app to help you construct your budget.
First, capture all the income you anticipate getting in this year.
Second, add all the monthly expenses you have.
Next, set money aside for paying debt.
Finally, determine how your money goals fit into your budget.
Review your budget until you get to a point where your finances make sense to you.
Improve Your Financial Intelligence
The secret to getting better at anything is to improve your knowledge about the topic. You need to learn continuously to do stuff better.
Something most of us don’t know much about (but should get to know better) is our brain. Learn more about your brain and how to use it for financial success by attending the Brain-A-Thon.
Tip 4: Establish Milestones With Specific Rewards
A goal like $5,000, $1,000, or even $500 can seem like a big mission. Yet it doesn’t have to be because you can attain your goal by having a solid plan.
Break It Down
Every goal has action steps to help you reach it. Usually, these action steps are quite evident such as saving money or paying debts.
Whatever goal you have, you need to break it into smaller pieces called milestones. These are mini-goals that are manageable and much easier to achieve than your bigger goal.
Financial milestones are quite clear already because you can break an annual goal down to a monthly milestone. You could even take it further to a weekly milestone.
For instance, paying debts of $5,000 requires a monthly payment of $417 which is just over $100 each week. You might realize you are spending $100 per week on socializing, so simply reallocating that money can do the trick.
Track and Reward
When kids do something well, they get some kind of reward like a sticker, a pat on the back, or a new toy. The same thing works for adults because our brains like rewards.
After creating your milestones, think about how you will track your progress and reward yourself.
An accounting program, app, or even a hand-drawn chart can help you keep track of what’s happening with your money. Many apps allow you to set goals and milestones, so these could alert you to recent achievements.
Reward yourself when you reach a milestone. Whatever reward you choose, be careful that it doesn’t undo your hard work. It could be something simple like buying a new book, adding a sticker to a chart, or sharing the news with loved ones.
Tip 5: Attend the Brain-A-Thon
Financial intelligence is within your reach. The best way to improve your financial situation is to attend the Brain-A-Thon.
At this once-in-a-lifetime session, we reveal why your brain is your most important tool for financial success. Join us, as six brain experts share their top tips to change your income by changing your brain.
They have the most powerful techniques to get more from your brain so that you achieve your financial goals faster and easier than ever before.
Change Your Life
The Brain-A-Thon only takes a couple of hours during a single day, but it will benefit you more than you can ever imagine.
In one day, you will learn:
The secrets to unlocking your brain’s hidden power and potential
Quick strategies to remove the invisible enemies holding you back mentally
A simple way to turn stress into FUEL
Techniques to create certainty and financial freedom—even during uncertain times
The strategies to become irreplaceable and invaluable in a changing world
Some unusual tricks you can use to become “automatic” and work smarter (instead of harder)
Reserve Your Space Today
The Brain-A-Thon WILL work for you!
During this event, we are going to share formulas and strategies that work for everyone—yes, even you.
How can we be so certain it will work?
It’s because all of us have one thing in common: a brain.
Regardless of industry, age, gender, and any other personality traits, we all have a brain, and 99.99% of us can get more from it.
Spaces at the Brain-A-Thon are in high demand, so reserve your seat as soon as possible.
About The Author
NeuroGym Team: NeuroGym’s Team of experts consists of neuroscientists, researchers, and staff who are enthusiasts in their fields. The team is committed to making a difference in the lives of others by sharing the latest scientific findings to help you change your life by understanding and using the mindset, skill set and action set to change your brain.
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