There is no better time to take stock of your financial situation than at the beginning of a new year. The best way is to go through what went wrong and what went right, and make appropriate adjustments going forward.
What did I Add to my Savings?
We make a decision to save a certain amount for the year, whether it is through automated monthly deposits or simply by putting aside as much as we can from each paycheck and bonus. This is the perfect time to take a look at your savings account and see if you have managed to reach your goal, or if you need to readjust your strategy for the current year to make the number go where you need it to be.
Did I Follow my Budget?
We all set some goals at the beginning of the year, but we usually only manage to stick to a bare minimum of them. If you set up budget goals for last year and did not manage to truly follow them, it is time to sit down and see what worked and what did not, and to adjust your plans for 2016. It is all about balance and planning, and while there are things that cannot truly be predicted, such as a health crisis, having an emergency fund can prevent it taking a too big of a hit on your budget.
Can I Improve my Financial Habits?
A lot of the time we spend money we do not have to be spending whether it is new clothes we truly do not need, or the latest version of a phone that is less than a year old. If you are trying to improve your spending habits, these are the things to pay attention to. Changing just a few habits can make a huge impact on your bottom line.
By taking the time to reflect and take action on these questions, you should see a significant improvement to your bottom line by the end of this year.