Many people are looking for ways to improve their finances and to strengthen their financial position in 2020. If you are already stuck in debt, earn too little, or plan to purchase a home or car for yourself – then you don’t need to be worried. You can achieve all your financial goals by taking care of small things, like cutting back expenses, improve savings and investing in profitable businesses. Let’s see what Pacific Collection Group has to say on the matter…
Here are the 8 things that you can do in 2020 to improve your finances:
If you are struggling to manage your finances or want to improve further, the first thing you should do is to prepare your budget for the whole year for your expenses, income and financial goals and divide it further on quarterly and monthly basis.
Minimize Your Monthly Bills
You can save a lot of money by taking steps to minimize your monthly bills taking extra care of your power consumption, getting the best deal from your cellular company according to your needs and buying monthly grocery on a discounted price at bulk stores.
Save and Invest 15 Percent of Income
According to the studies conducted by Bankrate.com, only 1 out of 4 Americans have enough savings in their account to last for 6 months in case they lose their ability to earn. The best way to secure your future is to invest at least 15 percent of your income in a secure plan. This investment will give you a financial security in the long run.
Reduce Your Credit Card Use
The best way to improve your finances is by paying off your interest bearing debts and limit the use of credit card. If you are a frequent user of credit cards, it means that you are regularly paying original amount plus the interest amount. So try to reduce or stop the usage of credit card and save the interest money.
Fix You Unnecessary Drainage of Funds
You can save up to 10 percent of your total income by not eating dinner with friends and family in restaurants every day. Stop ordering coffee in the office every hour or two and stop going to the movie theater so frequently. We used to go to the movies at least twice a month but for four people the tickets and concession can be a full car payment or more! Needless to say, we rarely get to the movies anymore. Instead we rent on Vudu.com and have Saturday movie nights each week for a mere fraction of the cost. You can do these things occasionally but will disturb your finances if you do them more frequently.
Find Additional Income Sources
The rate of inflation increases every day and one cannot survive with one source of income, even with a very tight budget. Those days are gone. Every single person I know has more than one income stream. Some may have their full time job and a cleaning job on the side; others work in hotels on the side; others freelance and more.
To meet current day financial demands, you need to generate more sources of income by starting some part time job (side hustle) or making a short term investment which can give you something in return on monthly basis.
Make Realistic Goals
To motivate yourself, you must set some financial goals in your life. The important point in setting up goals, is that the goals must be realistic and achievable. For example if you want to buy a car in the next year worth $50,000 and your monthly income is $20,000. So you have to save $5,000 a month to get there.
Make Your Savings Permanent
Try to avoiding situations where you work hard to save money for a period of time but then dig out all the savings to meet a deficiency or to make an unplanned purchase. The savings must be protected and they should grow with the time.