Tips for Managing Finance at the End of the Year

Little does it realize that we will soon be leaving 2022, and now we are ready to welcome 2023 with renewed enthusiasm. As you accept the new year, you will make resolutions to set new goals for yourself and strive to improve. Aside from improving yourself, improving your financial situation should also be your number one resolution in 2023. So you must check out these tips for managing finance at the end of the year!

You may have heard the saying that your habits will determine your future. Sounds simple, but it is actually very true. The same applies to managing finances. This ultimately determines what your financial situation will be like in the future. Will it be rich? Or even poor. If you don’t want to experience the last situation, let’s start living good habits in managing finances.

If in the past year you felt like your money was always running out, in the coming year, you need to change that bad habit by starting to plan and manage your finances properly. So here are some tips for managing finance at the end of the year you can use to change your bad habits for the better.

Managing Finance at the End of the Year

Managing Finance at the End of the Year

1. Discipline in dealing with money

Managing money is not difficult as long as you are always disciplined about it. If you decide to downsize, be aware that the decision is not just a week or temporary, it can go on. In addition to being disciplined with money, it’s also essential to be disciplined about saving and investing in preparing for your future financial needs.

 

2. Capture expenses

If you want to manage your income well, start by tracking expenses regularly. You can begin monitoring general expenses ranging from daily, weekly, to monthly. After capturing the costs, perform a simple analysis of the payments made by grouping them into mandatory, non-mandatory and supplementary fees. Only allow optional or additional costs to account for a larger share of spending than pressing needs. With capturing expense you can better at managing finance at the end of the year.

 

4. Commit not to spend more than 70 per cent of your salary

As Don Marquis said, commitment begins with habit. Money will shape your character, lifestyle and character. As Francis Bacon noted, money is a good servant. However, it is the master who has bad habits. As a simulation of your commitment, try setting aside 30 per cent for savings. No matter how high the salary is, the nominal 30 per cent must flow into savings. For example, you earn $300 a month. That is, your savings amount is $300 multiplied by 30 per cent. The result is $90 per month. The monetary value of $90 multiplied by 12 months equals $1,080. This is the wealth you have from saving. Again, the key here is commitment.

 

5. Create a shopping plan

Cost savings mean you can still shop at the mall. Create a regular shopping schedule to keep the activity going. If your budget is too high, you can shop up to four times a month. Conversely, if the salary is capped, spend at most double. To save even more, you can take advantage of discounted moments at the end of the year or on certain holidays. At this point, you can usually get a discount of up to 50 per cent. Another tip, pay for groceries with cash. Try to avoid carrying a debit or credit card with you when shopping.

Managing Finance at the End of the Year

6. Set up alternate accounts

An alternative savings account can help you save and manage your money better. This will undoubtedly have a positive impact on your finances. If you have received a monthly salary, immediately invest the salary in the alternative savings, account you have specified.

 

7.  Avoid lifestyle competition

Lifestyle is one of the things that significantly affect the financial situation. Adopting a consumptive lifestyle to follow a competitive lifestyle can undoubtedly impact your financial situation as spending becomes more lavish. Therefore, you can adjust your lifestyle while maintaining simple, healthy, and prosperous behaviours. And stop being prestigious and extravagant. So that you can do managing finance at the end of the year for your the better finances.

 

8. Avoid debt

One of the habits you must adopt to have a good financial situation is avoiding consumer debt. Even though various establishments are currently in debt, these conveniences can cause you to get even more out of control from dependency on debt. Therefore, create healthy finances by avoiding consumptive debt but aiming to owe something productive, such as business capital.

Managing Finance at the End of the Year

9. Fight wasteful habits

One of the bad habits in finance is wasteful habits. If you want to avoid having financial problems in the future, you must learn to prioritize so that using your money prioritizes meeting needs rather than wants. Start saving or investing by allocating at least 20% of your income, as it will help you achieve future financial goals.

 

These are habits you can adopt to achieve better financial resolutions in 2023. Of course, changing bad habits requires strong intentions and determination! Your answers can be realized in 2023, and keep improving your financial by following information like managing finance at the end of the year above.

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