As we make our way through the first month of the new year, we can look back and reflect on our spending habits. Maybe you have been buying more groceries to avoid having to get takeout from the winter weather, or maybe the start of classes has made it difficult to dedicate time to cooking. Whichever the case, it is important to reflect on your financial choices and reflect on whether you want to improve, change, or maintain your decisions.
Once you figure out how you want to use your money this year, it is time to organize. By organizing your finances, you are closer to achieving your goals. If you want to maintain or change your spending habits, you can make a chart of what you are spending money on and detail your total spending for the month, week, or even daily. After doing this for a while, you will be able to notice patterns in what you buy. Maybe you get more groceries, maybe you use your money to buy books, or maybe it’s just miscellaneous purchases. It is important to recognize these patterns because once they are realized, they can help you achieve your financial goals.
Then, after this, it’s very simple! If your goal is to maintain expenses, you can just continue to follow the habits that you have been doing. If you decide that you want to spend money on something else but not affect your overall spending, you can allocate your funds to different sections. If your financial goal is to spend less, you should identify where you are spending the most. If it is a sector you can cut back on, it is good not to spend as much on it. But if it is a necessity, then go to the next sector you spend the most on. Finding somewhere finances currently being used are not needed, it will allow you to save money and overall spend less.
If your financial goal is to spend more, then lucky you! Think about spending the money on something that you enjoy. If there is a restaurant or café that you have been wanting to try, go for it! Or if you want to save the money and invest it, that is great as well! It is important to see what matters to you and what would make the best use of the money for you.
Even if you think that you do not need to make any changes to your finances, it is important to still check. Just by saving a dollar, it will make a difference in how much money you save, as these dollars add up over time. So this year, make sure to pay attention to what you spend money on, how much it costs, and if it meets your financial goals.
