How To Start A New Budget For The New Year
If you wish to make the upcoming year a financially successful one you should think about taking up budgeting.
And what better time to start than right before New Year? Taking control of your finances is the best way to ensure the next year will go smoothly and you’ll be on top of all possible emergencies. And as 2020 has shown us, life is always going to throw us curveballs; our ability to handle those curveballs is what determines our success.
Here’s what you need to take into account if you want your budget for the upcoming year to work.
1. Carefully Review Your Spending
Uncontrolled spending is reason #1 why even those with decent income sometimes fail in their financial goals.
Before you enter the new year, take a careful look at the last year – what did you spend the most money on? How much of it could you avoid spending? Was there anything you tried to save money on – and ended up paying twice due to low quality?
Take all of it into account for the next year’s budget. Give yourself a monthly allowance for things like eating out, clothing, and get-togethers – most of us usually spend more than we should on these. Keep your budget realistic – but don’t give yourself too much of a wiggle room or you’ll end up spending more than you should.
2. Make An Emergency Fund
Emergencies like car repairs, clogged sewer lines, or lockouts, are usually what break even the most well-thought-out budgets. But you can stay on top of them if you have an emergency fund – money that is specifically for this type of spending.
Start the new year by funding one. We’d recommend keeping enough money to cover a month of your expenses at the least – but optimistically it should be between 3 and 6. While this might sound a lot at first, this year – though abnormal – has shown that emergencies can last quite a lot.
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3. Make Sinking Funds
Make sinking funds for expected expenses you know cannot be avoided – large purchases, vacations, holidays. Keep them separate from each other and add a certain amount to them monthly to fund it by the time the occasion rolls around.
For example, if you plan for your Christmas budget to be, say, $500 for next year, you should add around $42 monthly to your Christmas sinking fund starting in January – so that by December it’s fully funded.
4. Set 15% Aside For Investing
Don’t skip investments. This is what will determine your financial security down the line. It might seem like something you can always do later in life – but those who start investing early are generally more secure later.
You don’t even need to start big – set aside around 10 to 15% of your income and start investing slowly. You can consult a professional about your best options. In fact, getting professional consultation is exactly what you should do. But if you want to take a risk and start on your own – you could use an easy investment platform like Robin Hood.
5. Know Your Options
Sometimes you can plan your budget – including all the emergencies – down to the t and an emergency can still hit you at a time when you’re unable to cover it.
This is why it’s important to not only plan your budget – but learn about ways of acquiring cash fast to take care of emergencies swiftly if what you’ve set aside isn’t enough.
For example, if you’re a car owner, then taking out a title loan could be an easy way to acquire cash the same day if there’s something urgent to be handled.
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What Are The Benefits Of A Car Title Loan?
Car title loans are some of the easiest and quickest loans to acquire. They’re a great option for those who need money fast since the entire application process lasts on average 30 minutes and you get the cash either the same day or the next bank business day.
They’re also accessible! All you need to qualify is be of legal age, provide an ID, own a car, and have that car’s title be in your name and lien-free.
Since a title loan is a secured type of loan – your car acts as collateral – our lenders work with all types of incomes and credit scores, so you can get approved even if you have no credit score at all.
How Do I Find Title Loans Near Me?
Luckily, these days you can easily apply for a title loan online without ever leaving your house. Just start by filling out our online form:
- After you submit the form, wait for a loan representative from one of our Mississippi Title Loans places to contact you.
- You’ll decide the meet-up point – you don’t need to visit the store if you don’t want to.
- Meet the loan representative and provide your vehicle and your ID and car title for assessment.
- The loan representative will determine how much cash you qualify for – you can get up to $2,500 – and see if you are approved.
- If you are approved, you’ll either get the cash the same day or the next bank business day.
When it comes to budgeting, here are tips to make your next budget work for you. Whether it is saving up an emergency fund or reviewing your spending to cut costs, you can set up a budget that works for you. When an emergency arises and you are out of options, a car title loan can be just what you are looking for.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.