In April, many of us might still be wondering if any of us have fulfilled the New Year resolution of saving more and spending less yet. Most of us might not have been able to do so till now. So, here are some tips to achieve the goal by a personal finance expert Timothy Gagnon, who is an assistant Academic Specialist of Accounting at Northeastern University.
The first step would be to track and analyse our daily expenses and cut short the unnecessary expenses. One should make a habit of paying cash because card payments lead to impulsive buying. Above all, one cannot track their changes on an ongoing basis. While purchasing in huge amounts, one should ponder if he\she really needs it. While going shopping one should first of all list down the necessary goods required. It’s the old adage that you do not do grocery shopping on an empty stomach.
Prepare a budget at the beginning of the period and track the expenses accordingly to see a summary of spending. One should think upon the measures to grasp it. Reconcile the accounts regularly and review the debit and credit card purchases on a regular basis. This will help in determining unnecessary transactions. There should be an amount assigned for you to enjoy or go wild but remember not to exceed the amount assigned.
One should start funding the IRA (Individual Retirement Account) and should use the year’s tax refund to fund the next year’s IRA. This will help in avoiding the sudden burden of payments. Fund 401(k) at least to the level at which you can get employers maximum contribution. Have money automatically directed to a savings account out of each paycheck so it will not be spent before you save. Post following these tips, you will be able to fulfill this year’s resolution.
Surabhi Garg
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