When the New Year begins, most of us make New Year’s resolutions. Some of them deal with matters related to diet, some with health, but a large part of people decide to change something in their finances. As studies show, in their finances every year, something up to 50% of people in all age groups want to change something.
Proper management of the home budget is a problem for many people. We spend too much money, we save too little, therefore, often our finances are in a deplorable condition. And we do not have to “compress” a lot to restore the home budget. And proper financial management is often our New Year’s resolution. But what do we promise ourselves most often? It turns out that most of us are planning better control over expenses. You can do it in several ways. Finance specialists say that the best way is to save your expenses. We do not have to be here, of course, how much money is accurate about the penny, it is about noticing how often we spend money on something that we absolutely do not need. When we strip out all unnecessary expenses from our list, we will quickly notice how much money each month can be in our portfolio. And how much will we save if we give up 50% of such expenses when we multiply this amount for 12 months? One more example of reducing domestic expenses is shopping, which we do practically every day. It’s enough that before we go to the store, we’ll make a list of the things we need and we will stick to it closely, and again in our wallet will be a large sum. It turns out that when we go to the store, we often buy unnecessary products for which we spend a lot of cash. Then we throw them into the basket, and on our account, we run out of money.
Another very frequent New Year’s decision is to start saving. We want to do it for several reasons. Some begin to understand that the money we will receive in retirement will not be enough for a normal life, so they decide to collect a sum that will “help” our home budget after the end of their working life. Others try to save money for the “rainy day” because you never know what will happen in our lives.
A relatively frequent decision is also an earlier repayment of owned loans. We try to get rid of debts on credit cards, our debits or cash loans. Of course, the early repayment of any debt, positively affects our home budget, because we do not have to pay interest that the bank would charge us at the time of debt.
The fact that it is not easy to keep to the New Year’s resolutions has already convinced many people. This also applies to financial provisions. But despite everything, it is worth trying, because thanks to this, in our home budget, there will be much more funds that we can spend on a specific purpose, not on unnecessary expenses.