The new year provides the perfect opportunity to revisit our finances and create a savings plan to organize it.
In a report published by Readers Digest in its Australian edition, Mary Sawyer provides advice from financial advisors that can help facilitate this process.
Keep written records
The first decision to make about your finances is to define and write down your financial situation in writing. For some, savings accounts may be easy to ignore in favor of covering weekly expenses;
But this will prevent you from controlling your finances.
Financial advisor Patti Cathy advised that you allocate about an hour to conduct a complete inventory of all your financial accounts, create one document for each account, and then put various information about it, including how to access it, and you can review the list with your husband or one of your adult children.
Keep track of your expenses
Some financial errors occur as a result of your lack of interest in personal spending habits, and once you make an inventory of your money, look for any unnecessary expenses or costs in your accounts.
"Are you paying for a gym membership without using it? Have you noticed suspicious expenses that could indicate you are being scammed? Paying attention to those little details can make a big difference to your financial situation," Cathy says.
Take small steps
When the new year arrives, some people may be tempted to make big financial goals all at once, to eventually fail.
Therefore, Cathy advises its customers to make small sustainable changes to their expenses, to pave the way towards greater savings in the future, for example, instead of cutting out the morning coffee completely, start by cutting out one cup per week.
It is best to set aside about an hour for a complete inventory of all your financial accounts (Getty Images)
Find creative ways to earn extra money
Making a little extra money may make it easier for you to achieve your financial goals;
Therefore, Cathy encourages its customers to search for any possessions they have in the home that they no longer need, such as clothes, jewelry and books, and sell them in specialty stores or online.
Slow down before paying
Think carefully before spending any unplanned purchases, and before using your credit card, Cathy recommends setting a 48-hour wait rule before making any major purchases, and if the desire for it or the need for it is still present, then you should consult your partner or family member. First.
Make yourself a priority
Day-to-day expenses may prevent you from saving for emergencies or preparing for retirement years;
Therefore, the author of "The Automatic Millionaire" David Bach advises those with big financial goals to start taking an automatic approach to their savings every time they receive money, explaining that adding a small amount to your savings is easy and pays off in the long run.
Use online banking tools to efficiently distribute money across your various accounts including: retirement accounts, emergency expenses, mortgages, credit cards, and other recurring bills.
Plan ahead
Everyone should make sure that they are on the right track towards a financially comfortable retirement, by communicating with a financial advisor. David Bach suggests that you write your will.