New Year Resolution – Planning my Finances

Saving for the future

Being single has its own advantages and disadvantages. However I love the freedom that comes with it, but am worried about only one thing – My finances. So once again I am planning my New Year resolutions to save for my future. I decided not to re visit my last years goals as I am a coward and do not to know if I achieved them or not. For me it is the planning  and implementation that is important. I am this year going to adopt a new approach…

Saving is supposed to be hard as you have to stop spending on whatever you want. That is what you all think, but it is not so. You can enjoy buy what you like and still save much for the future. Here is a three-step plan which will make saving much easier.

Step 1 : Understanding cash flow – The very first step is to understand how cash comes and goes out from your account. This is called studying the income and expenditure patterns. This will help understand your behaviour with the expenses. You can also concentrate on earning more. That is what I did. I started writing part-time as freelancer and that brings in the extra money for the saving.

Step 2: Decide your spending in advance – I am not saying that you should not spend when you like. I am an impulsive buyer and do that. But deciding the spending before going for shopping will help you to spend wisely. Lists help the most. Here are some tips to stop impulse buying in this article.

Step 3: Limit monthly bills and Increase fixed saving – You can be careful with electricity, travelling and eating out. Also fix what you will save monthly. This will leave much in you hand and you can go for a holiday once a year! Turkey here I come (I hope).