Controlling Your Finances More Effectively In The New Year

by Kyle Taylor on January 10, 2014

0 Flares 0 Flares ×

New Year is a time when most of us cast an eye to the future, after reflecting on the past. Financial control ranks highly in the list of New Year’s resolutions, so often a feature in households across America at this time of year. People everywhere want 2014 to be more prosperous than 2013, and key to achieving that is more effectively controlling and managing your financial affairs. While it might seem like common sense, sound financial judgment is something we leave up to chance far too often, yet the differences between managed finances and unmanaged finances, on the same income, can be stark. For a more financially beneficial 2014, it starts with coming to terms with how much you are spending, how much you owe and how much you are earning, so you can start to draw up a more direct plan of attack.

Image source

Budgeting is the first step to controlling your finances. Whether you are an individual managing your own finances, or you are Global Chairman Mark Weinberger, budgeting is crucially important to financial management. One of the most important steps on the way to financial control is to have a budget in place, so you can identify how much you are earning, and how much you can afford to spend on different areas of your life. Without a budget, it is all too easy to let expenses run away with themselves, with the end result of less money in your pocket (and even less clarity about your overall financial picture). In order to achieve these insights, you need to write down your income, outgoings and general expenditure, so you can start to manage and control where your money is ending up. This will allow you to take charge, over chance, to steer your financial circumstances to the most effective conclusion.

Many Americans choose to use credit cards as a mechanism for managing their finances in the short term, and for funding larger purchases over a longer period of time. Credit cards can be extremely useful in handling these short-term needs, but they can also be considerably more expensive than other forms of borrowing over time. If you have credit card balances you are currently paying interest on, consider switching to a promotional rate. There are cards around that offer 0% on the balance for a period of time, and it may be worth investigating these options while you arrange to pay off the remaining capital as soon as possible. This will save you money on your borrowings.

Image source

Financial control is step one on the ladder to better personal circumstances. No matter your age or financial background, taking charge of your finances in a proactive, goal-orientated way is the best way to unlock the full benefits of your earning power. It is often surprising just how much you spend, and before drawing up a budget, it can be impossible to know for sure where your money is going. Through drawing up forecasts, budgets and plans, and structuring your finances in the best way to deliver results, it can be possible to reduce your outgoings, maximize your income, and expand the difference as you move through a more financially responsible 2014.

0 Flares Facebook 0 Twitter 0 Google+ 0 LinkedIn 0 0 Flares ×

Previous post:

Next post: