The organisational bug has gone viral thanks to Netflix series such as Marie Kondo and the Minimalist. The 2019 craze is set to declutter and re-budget for our newly organised lifestyles. Budgeting is often thought of at the beginning of a new year. What did you waste money on in 2018 and how can you avoid this in 2019? Looking for some money goals in 2019? Here’s how to plan for budget success this year.
Step 1: What are your money goals in 2019?
Are you looking to reduce debt? Save for an investment? Do you have an upcoming lifestyle change, like starting a family? It’s important to create a financial goal list to define what you are trying to achieve. Look at it as a motivational list that you stick somewhere to remind yourself daily of your money goals.
Step 2: Dust of your budget
When was the last time you revised your budget? These days there is no excuse for not having a detailed budget, especially if you are running a business. Whether you plan your budget using a government online calculator such as this one here or with your accountant, a budget is a must to reach your 2019 money goals.
Step 3: Analyse your spending habits
If you’ve been honest in filling out your weekly or monthly spending, it won’t be hard for you to determine where your potential money leaks may be. Short term money savings are easy to stick to, such as, cutting back on non-essential items. Clothing, food and luxury purchases are a simple cut to make to further your money goals. Take your everyday spending one step further by tracking daily what you are spending (yes, there are apps for that!)
But what leaks are you potentially overlooking? If you run a business, now is the time to assess your business spending and profit and strategize for a more efficient outcome.
Other aspects of your budget to look over with your accountant could include;
– High interest savings account
– Offsetting your mortgage
– Re-Financing your home loan
– Rolling credit debt over to a no interest (for up to 12 months) account
Step 4: Invest in assets that will make you money
Sounds obvious, right? Sometimes we all need a little reminder that the sun roof you so desperately need as a feature of your new car will only lead to sunburn and ageing. Spend your money wisely and think twice about luxuries you don’t necessarily need.