Financial planning should be part of our lifestyle, but most of us leave that to new year’s resolutions. We end up forgetting about those promises before we’re even halfway through the year. Here are six tips to get back on the right path and restart your mid-year savings plan according to 1Life.
Review and re-evaluate your finances
To better understand your current financial situation, begin with a big-picture view. Don’t try to budget in your head, rather list your household income, expenses and savings goals in an organised document so that you can easily keep track of what you are spending and where.
Work out where you have managed to save and how
If you have managed to be successful in certain aspects of your finances, take note of why and how you were able to achieve these goals because it may help you to achieve others.
Look after yourself and your loved ones
Ensure that your car, home, life and health insurance policies are updated to keep up with your respective life changes. Check that your cover still meets your needs and that your beneficiaries are correct. Another consideration is having a will in place and setting up a trust for your children in case something happens to you.
Plan your budget to get out of debt
Work out how much it would cost you each month to reduce your debt, based on what you earn and other financial commitments you have. Look at statements and ask yourself which creditors you need to pay first, and then work on reducing the debts that carry the highest interest rate first.
Saving and investing
While reviewing your insurance policies, it might also be a good time to review your investments and savings plans to ensure they deliver what you need and are accessible when you need it. Saving is paying yourself first by taking a regular amount off your salary and placing it in a bank account every month, earning a small but steady return on interest and investing is usually a long-term saving used for wealth building.
Achieving financial freedom to change your life
Make your money work for you so that you can enjoy it! Occasional splurges keep your budget from becoming tedious and make you more motivated to cut costs elsewhere during the year. This way, you’ll be able to reward yourself later and when you do finally do something for yourself, you can sit back and enjoy it even more because you embarked on your own personal savings drive today!
