Happy New Year FitnanceIQ family!!! Can you believe we are going into our third week of the year!!! I hope the year is treating you well so far!! Ideally, I was making an IG (Instagram)post but realize that it may be too much content so it’s better to condense it on IG and just have it as a blog post.
These tips are not in any particular order. But to get a hold of your budgeting you need to:
- Track your expenses
Knowing where your money is going out is very important. This will help you figure out how to allocate to different categories. Track the last 90 days of your spending, if you can’t account for something put it in the “miscellaneous” category. This will also help you form the accurate categories for the items you spend on.
- Create a budget
The point of a budget is to maintain and control your money that is coming in and out. So if you are able to know your short-term and long-term goals and figure out how to increase your income you are winning in the long-run! Figure out whether you want to do it cash basis—put the money in an envelope or jar and when the money runs out, sorry you have to wait until next payday. Or whether you want to do it debit basis—make sure you have unlimited transactions, this will only work if you put your funds into different categories.
- Adjust your spending habits
Are you seeing where your money is being spent? Eating out? Happy hour? High phone bill? Impulse shopping? Try figuring out which of these can be tweaked and reduce your spending. Examples, if you buy coffee or lunch, try to cut it down to twice a week and make your own coffee or lunch. Or if you have a high phone bill, check other phone company that has a better deal or even threaten to leave your phone plan and they will accommodate your budget.
- Build an emergency fund
Ideally, you want to save for three to six months’ worth of ESSENTIAL living expenses. I know this is difficult for many people, but if you get the habit of saving it becomes second nature. Additional tip automate your savings and pay yourself first!!! This way you adjust to less money work with what you have let to take care of your cost of living. Even if its $5 a week or even 10% of your pay, in six months’ time you will see how much you have actually saved. This also will help when unexpected expenses come across in life and trust me…something can always happen. So have this safety cushion so you are not stuck in a rut.
- Seek financial tools and guidance
Due to technology, there are many tools online to help you whether they are templates or programs. My favourites are Excel and personal finance apps that help you keep track aka Mint (free) or YNAB (this one isn’t free). One of the issues that I find are individuals does not have the time or patient to handle their finances. So have no fear FitnanceIQ Services is here to educate you and provide you with the guidance and advice to help you become financially stable and literate.
Feel free to book a consultation by contacting me at email@example.com, it’s a new year, let this be the year where you take control. Let’s get financially fit together!