4 End-of-Year Budgeting Tips That Set You up for Success
Another year will be here before you know it, and if you’re like many people around the world, your finances may need some extra TLC right about now. Here are 4 best budget tips for you.
Not that it’s entirely your fault. Between the lingering effects of the pandemic and cut-throat inflation, circumstances outside your control have made it harder than ever to pay bills and build your savings.
The thought of another 12 months of the same can be daunting, but there are things you can do now to help you next year.
1. Follow a Budget Every Month
Everyone knows how important a budget is, but few people commit to following one after making it. Some don’t even make a budget at all.
If you’re in the same boat, this is the year to change your habits. Having a budget can help you see where your money needs to go, so you can prioritize the important things, like paying rent on time and still having enough cash to get takeout on the weekends.
Try the 50-30-20 Budgeting Method to help you strike this balance between the essentials and fun things in life.
2. Focus on Your Emergency Fund
Saving more of your money in an emergency fund is one of the most important things a budget can help you achieve. Most people aim to save three to six months of living expenses as a cash cushion in case something goes wrong.
Even one month of living expenses can be hard to scrounge together but be patient. You’ll eventually sock away funds over time with consistent contributions.
If an unexpected expense arrives before you can get enough cash together, consider an online loan carefully.
Online loans come in all shapes and sizes, so it’s a good idea to explore your options. You can see what it takes to get a loan online by shopping around and comparing rates and terms.
3. Set Specific Goals
It can feel like your finances are stuck in neutral when you’re only ever reacting to things happening to you. Setting specific goals can help you get back into gear and use your money to make things happen in the new year.
Taking back control requires thinking about what you want in life — whether it’s buying a new car, going back to school, or retiring on time at 65. Even little things like redecorating your bathroom or taking evening music classes can give your budget purpose.
4. Think About Your Income
All too often, when people sit down to “fix” their budgets, they look at the ways they’re spending their money. And while this process helps you find ways to cut back to free up more cash for bills, savings, and goals, this might not be enough on its own.
If you’re living paycheck to paycheck just making ends meet, you’re not earning enough money to meet your needs. Now’s the perfect time to ask yourself the following questions:
- Can you ask for a raise or promotion?
- Can you levelup your skills with free online classes to apply for higher paying jobs?
- Do you have the time for a side hustle?
These simple questions can put you on a path towards a better financial future. Combine it with all the work you can do with your budget and setting goals, and you might give your finances some breathing room next year.