4 Easy Ways to Progress Your Finances in 2014
“Without continual growth and progress, such words as improvement, achievement, and success have no meaning.”
– Benjamin Franklin
At Payne Wealth Partners one of our goals is to progress our client’s finances from year to year through in-depth planning and investment strategies, but what about the smaller, minuscule ways to make your financial year better than the last? In this post, we will explore behaviors to get the most out of your money in 2014.
The first step is to plan out your year. Simplify and plan. Simplify and plan. Simplify and plan. Even though January has already sped by, you still have time to take the first step towards a progressive financial year. Here are our four easy, but important, ideas:
1. Find and Eliminate Excess Expenses
Too often do we sign up for/buy something that at the time seems like a great idea, but eventually is forgotten and irrelevant. Go through your bank and credit card statements to review all of your regular recurring expenses. Cancel any that you don’t use and explore the possibility of canceling the others by contacting the vendor. This gives them the opportunity to offer you an incentive to stay.
A friend recently went to AT&T to purchase the new iPhone and found that he was paying for two iPads when he only used one. He went into AT&T thinking he would have a higher monthly payment with his new phone, but by canceling the extra unused iPad account he now enjoys a lower monthly payment and a new iPhone.
Be fearless – cancel everything you don’t use and negotiate a reduced rate on the items you do use.
2. Set a Challenging yet Attainable Goal
Choose an amount that represents the cost of something you want or need (i.e., a vacation, new golf clubs, or a down payment on a house). Take that amount and divide it by 12. Be diligent and place 1/12th of the amount toward saving each month. If you’d prefer, you could even divide that chosen amount by 52 allowing you to save a smaller dollar amount, but every week. It could make it easier to live with what’s left, week by week or month by month vs. losing a (relatively) large amount all at once.
$5,000 / 12 = $416.67 a month or 5,000 / 52 = $96.15 a week
The goal we discussed in #2 ended with a number for you to withdraw each month or week. To solidify that goal, treat your savings like any other bill you have to pay. Set your paycheck to automatically deposit the amount you figured from above into your savings. Then wait and watch your savings grow.
4. Lower your energy usage
In no way is this a new idea towards saving money, especially in the 21st century, but it could significantly decrease your monthly energy bill. Today there are thousands of technological advances on ways to save on energy. In most cases, buying something that is organic or energy efficient is more expensive, but going “Green” and making your house energy efficient could save you money in the long run. While some areas may be more difficult, an easy place to start is with your appliances. You’ll be doing the world and your wallet a favor.
All the above ideas are merely suggestions to help you achieve a progression of your finances.
At Payne Wealth Partners, planning your financial future is extremely important. The confidence of knowing your money and future is where it should be is invaluable. Our knowledgeable team is dedicated to helping you manage a very important part of your life…your future.
Posted: February 12, 2014
Authored by: Ann Pendley, CFP®
Direct Phone: 812-602-6304