New Year, fresh start.
If the last 12 months were hard on you financially, it’s time to contemplate on what contributed to that and leave all those behind as you welcome the New Year. To help you start anew, here are 5 money mistakes you need to avoid in 2017.
1. Not having financial goals.
Sure, you may know what you want to do with your money or where you want it to go but a goal that stays in your mind alone, is hard to achieve. Before 2017 comes, set financial goals and write it down. The simple act of putting your goals on a piece of paper increases the chances of it to be achieved.
2. Not tracking your expenses.
You NEED to know and see where your money is going – down to the last cent. Track your expenses by writing down every purchase on a notebook, an excel spreadsheet or use a smartphone app. It’s important to see the in’s and out’s of your money to avoid the black hole of income loss. This will show your spending habits and remind you of your limits.
3. Not prioritizing debt payment.
You have to make paying your debts the top priority next year. Every month, you need to set aside a certain percentage of your income that is designated for debt payment. By doing this, you are bringing yourself closer to financial freedom.
4. Not saving for retirement.
No matter how old you are, it’s never too early to start saving for retirement. Next year, place higher value on things with long-term benefits rather than short-term.
5. Not having a budget.
You can’t just live paycheck to paycheck, or spend every penny of your monthly salary. You need to have a budget and adhere to eat strictly. There are different types of budgeting techniques and you just have to choose one that fits your lifestyle and income.