New Year, New Savings Goals: Your Comprehensive Guide
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Understanding Your Spending Habits
The first step towards saving money is understanding where your income is going. A thorough review of your credit card and bank statements can reveal surprising insights. You might discover unused monthly subscriptions or realize you’re spending more on dining out than you thought. Identifying your essential and non-essential expenses is crucial to knowing where you can cut back.
Once you’ve identified areas of overspending, it’s time to create a plan to reallocate those funds to your savings account. Some people implement a “spending freeze” for a few weeks each month, refraining from non-essential purchases and transferring the surplus to their savings. Others set up a scheduled transfer from their checking account to their savings account each month. The key is to find a method that aligns with your financial habits.
Even essential expenditures can often be trimmed. Review your phone plan, insurance policies, and utility bills to ensure you’re not paying for unused services or benefits. Refinancing your mortgage or conserving energy to reduce your electricity bill can also lead to significant savings over time. The Mortgage Reports has a great article on how to lower your monthly mortgage payments.
Expanding Your Income
In addition to cutting back on expenses, consider ways to increase your income. This could be through a side job, freelance work, or even selling items you no longer need. The extra income can be directed straight into your savings account.
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Investing Your Savings
Once you’ve started to accumulate some savings, consider investing to grow your wealth. This could be in the stock market, real estate, or other investment opportunities. Remember, all investments come with risks, so it’s important to do your research and consider seeking advice from a financial advisor. The Motley Fool offers some great advice on how to start investing.
If you’re unsure whether to start with a financial plan or investing first, this blog from NEST explores the pros and cons of each path.
Additional Resources for Long-Term Planning
If retirement is one of your goals, check out this article for practical tips on how to prepare. And if you're interested in crypto as part of your future financial strategy, take a look at our crypto outlook for 2022.
Ready to Take the Next Step?
Setting financial goals is one thing, but making them happen is a completely different challenge. If you’re feeling overwhelmed by your financial goals for the new year, reach out to us at info@nestfinancial.net. Our team is eager to help you create a financial plan that empowers you with confidence and gives you practical ways to make your dreams become your reality.
This article is brought to you by the wizard behind the scenes with 23 years of experience, Dan Dillard. Of course with his workshop of helpers including some handy hi-tech sourcing.
If you’re finding it challenging to stay on top of all the changes, schedule a no-obligation call with our financial planning professionals. At NEST Financial, we can help make crypto not quite so cryptic.
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DISCLAIMER: We are legally obligated to remind you that the information and opinions shared in this article are for educational purposes only. These are not financial planning or investment advice. For guidance about your unique goals, drop us a line at info@nestfinancial.net.