5 Ways To Transform Your Finances In 2018
As 2017 comes to and end, it is important you pay attention to your finances for 2018. To help you be financially committed and accountable follow this simple ways to transforming your finances in 2018.
Set Clear Financial Goals
Goal setting has always been the most effective way of achieving whatever you put your mind to, setting clearly defined financial goals help improve your finances. Your goals should be real and measurable, you should set goals for short term and long term.
What are your long and short term financial goals?
Your long term financial goals should be a big picture ideal. 5-10years from now where do you picture yourself?
What will be your net-worth in 5-10years?
Once you have your long-term goals defined, you set your short-term goals as well. Your short-term goals can be 1 year from now or you can decide to set it monthly, quarterly or in 6 months. Write out your financial goals on paper clearly stated with the amount in Naira or Dollars that have a set date. Setting smart financial goals on a paper create a visceral transformation in your mind, you wake up to it every day because your goals are outlined and stated in front of you. It motivates you to do much more to achieve them. It also gives you purpose and direction.
Create A Monthly Workable Budget
Are you one of those who spend more than you earn? Setting a real monthly workable budget for your spending is the first step in transforming your finances and taking charge of your finances. Build a simple budget and stick to it. Organise your budget into different categories to see where your money is going. Create a list using a spreadsheet categorizing all item you spend on.
Set Goals For Savings
Most of us do not have a savings habit, this can to tied to the way we were brought up, but as we grow we unlearn some habit that won't let us grow and learn to cultivate habit that will help us improve in life. When it comes to our finances it is very important to have a saving attitude. Learn to set aside some percentage from your income into your savings account. Set a savings goal by tucking away 15% - 20% of your income and be committed to it. At first, it might seem down right impossible. However, overtime like any other habit this one takes root and get stronger and stronger.
Track Your Spending/Expenses
Believe it or not, it's absolutely impossible to keep track of everything in your head but if you are serious in changing your financial habit and transforming your finances, you need to commit to tracking absolutely everything from now on.
To do this, simply set up a spreadsheet, download an app or just buy a small note pad that you can write every single day. Dot down the expenses with some detailed information, include your amount, description, date/time, why you spent the money and categorize the expenses. Commit to doing this diligently for a period of 90days and watch your financial life transform. Tracking your expenses help you see what you spend on and also help you cut down some spending bad habits.
Pay Off All Debts
Debt is one the biggest deterrent to making headway in your finances,. If you are faced with enormous debt it hard to make financial commitments, To pay off debts make a commitment and be disciplined towards that commitment. Get in the right habit if you want a debt free lifestyle, track all your expenses, don't buy things on credit, cut down on your spending and be contented with what you have at hand.
Try out this simple guide and watch your finances grow.
Set Clear Financial Goals
Goal setting has always been the most effective way of achieving whatever you put your mind to, setting clearly defined financial goals help improve your finances. Your goals should be real and measurable, you should set goals for short term and long term.
What are your long and short term financial goals?
Your long term financial goals should be a big picture ideal. 5-10years from now where do you picture yourself?
What will be your net-worth in 5-10years?
Once you have your long-term goals defined, you set your short-term goals as well. Your short-term goals can be 1 year from now or you can decide to set it monthly, quarterly or in 6 months. Write out your financial goals on paper clearly stated with the amount in Naira or Dollars that have a set date. Setting smart financial goals on a paper create a visceral transformation in your mind, you wake up to it every day because your goals are outlined and stated in front of you. It motivates you to do much more to achieve them. It also gives you purpose and direction.
Create A Monthly Workable Budget
Are you one of those who spend more than you earn? Setting a real monthly workable budget for your spending is the first step in transforming your finances and taking charge of your finances. Build a simple budget and stick to it. Organise your budget into different categories to see where your money is going. Create a list using a spreadsheet categorizing all item you spend on.
Set Goals For Savings
Most of us do not have a savings habit, this can to tied to the way we were brought up, but as we grow we unlearn some habit that won't let us grow and learn to cultivate habit that will help us improve in life. When it comes to our finances it is very important to have a saving attitude. Learn to set aside some percentage from your income into your savings account. Set a savings goal by tucking away 15% - 20% of your income and be committed to it. At first, it might seem down right impossible. However, overtime like any other habit this one takes root and get stronger and stronger.
Track Your Spending/Expenses
Believe it or not, it's absolutely impossible to keep track of everything in your head but if you are serious in changing your financial habit and transforming your finances, you need to commit to tracking absolutely everything from now on.
To do this, simply set up a spreadsheet, download an app or just buy a small note pad that you can write every single day. Dot down the expenses with some detailed information, include your amount, description, date/time, why you spent the money and categorize the expenses. Commit to doing this diligently for a period of 90days and watch your financial life transform. Tracking your expenses help you see what you spend on and also help you cut down some spending bad habits.
Pay Off All Debts
Debt is one the biggest deterrent to making headway in your finances,. If you are faced with enormous debt it hard to make financial commitments, To pay off debts make a commitment and be disciplined towards that commitment. Get in the right habit if you want a debt free lifestyle, track all your expenses, don't buy things on credit, cut down on your spending and be contented with what you have at hand.
Try out this simple guide and watch your finances grow.
Comments
Post a Comment