7 Ways to Get Your Budget Back on Track in the New Year
The holidays are now behind us. Along with the piles of gift wrap and empty boxes, you may also have a drained bank account. So how do you get your finances back on track? Below you will find 7 ways to get your budget back on track. These easy to follow tips can help you recover from holiday bank account burnout both easily and painlessly. Here is how you can get started!
1. Go on a spending freeze.
After all of the holiday purchases you just made, it is time to go on a spending freeze. Do go on a spending freeze, simple vow not to spend any money unless it is on food or housing. This means no clothing, toy, movie, entertainment, or hobby purchases. Try for a 14 day freeze, if not a 30 day freeze to help save some money and avoid draining your account further.
2. Free up some cash.
Now that you have new clothing and toys on hand, try selling the items you no longer use. Take them to a local consignment shop or sell them online via eBay or social media selling sites. Take the cash you earn from these items to pay down any debt you still have.
3. Create a budget.
The New Year is a fantastic time to start creating and using a budget. Gather your monthly bills and add them up along with your monthly take home pay. This can help you see what disposable cash you have each month as well as how much you can put into savings.
4. Build up your savings account.
Speaking of savings, now is the time to start building your emergency fund up. Take the change you have left at the end of the day and stash it away. You can also take a small percentage of your weekly take home pay and store it away for safe keeping.
5. Be smart about your refund.
Tax season is upon us and you may be getting a nice income tax refund. Be smart about your refund and use it to pay down holiday debt or cushion your savings account a little more.
6. Get your family on board.
Setting a budget will easier if you let your family know about your efforts. This way, they can also spend smartly, help save, and make the whole process more of a group effort.
7. Be realistic.
Don’t expect miracles over night! Instead, take small steps to get yourself back on budget and in a routine you can stick to.
Let 2015 be the year you get yourself and your finances back on budget. Give these 7 ways to get your budget back on track try!