Your personal finances affect all aspects of your life so lets begin the new year by arranging our finances and creating a solid financial foundation for ourselves. Paying attention to the small details of our financial lives can give us peace of mind and a sense of financial security.
The 4 Week Financial Detox
- Identify and list all sources of income
- Identify and list all sources of expenses
- Automate your bills and monthly savings
- Set up frequent budget review dates – “money dates”
- Identify savings goals: short, medium and long term goals.
- Design a workable plan to change your spending patterns to meet your goals
- Start saving as early in the month as possible
- List your debts – Who you owe and how much you owe.
- Decide on a debt repayment strategy that you can stick to. I recommend the Snowball Method
- Design a workable plan to pay of debt and meet your target debt repayment per month and by year end.
- Monetize your skills
- Consider taking on a part time job even if its temporary or on a seasonal basis to help bring in extra income.
- Look for ways to turn your hobbies into a secondary source of income
- Create/think of ways in which you can create streams of passive income
Let this be the year that you take charge of your finances and financial future. I hope this helps you on your path!