New Year New Money

10…9…8…7…6…5…4…3…2…1. HAPPY NEW YEAR!!!!!!!!!!!!!!!

     Just yesterday, the world’s entire population found itself magically thrusted beyond the barrier of 2017 and into a bright shiny new year. No matter how great 2017 started, and no matter how poorly it ended, people have been walking around reflecting on what their resolution will be to ensure a better year to come.

     I personally, as pessimistic as it sounds, don’t really do new year resolutions….but that’s only because I believe that you shouldn’t await for anything to change for the better…BUT that is beside the point. I decided to write this article specifically about money because us millennials can never seem to keep our hands on that green leafy stuff!

     I had written a previous article entitled “Why You Can’t Save Your Money” and promised a follow-up article with ways you CAN save your money that don’t include “stop going to Starbucks”. With a new year on the way, I thought it would be the perfect time to give a few tips and ideas for saving better and spending smarter this year.

     To start off the year strong, you’ll want to develop a resolution that you can actually keep. If you make somewhere along $30k a year, you’re not going to want to set a goal of saving $2,500 every month because that’s pretty much your monthly income. Before taxes. That’s a cavalier example, but it’s just to put things into perspective. Aka..don’t be extra. Cut yourself some slack and don’t expect too much.

     With that being said, we might be able to dive right into some brainstorming. The website Wallethub, came up with a few money saving resolutions like paying your bills immediately after payday. This way, you have a real and tangible budget for the rest of the month. They also recommend developing an emergency fund slowly but surely which can give you some wiggle room month to month. Wallethub experts suggest:

“ultimately building a fund with about 12 to 18 months’ take-home income. But it’s important to understand that won’t happen overnight. In other words, you don’t need to put the rest of your financial life on hold until your emergency fund is complete. Rather, chip away at it over time.”

     When I started working full time, getting bills, credit, adult things, etc. I started to take more of an interested in personal finance. To get ahead of the curve I quickly evaluated my financial status and developed some tricks for holding myself financially accountable. Given my love for printables, I decided to find some easy printables to download and create my own budget binder. I split it up by monthly and yearly bills then measured my income versus expenses.  After a few months it was a lot easier and comforting to visualize my success saving and watching my student loan number chip away.

     During your prime years where you are working your butt off on a full time job and working 10 hours of overtime a week is when passive income can be the most useful. If you’re blessed enough to have a rentable space such as a condo, basement, storage unit, or room you should capitalize on that as much as possible. Make your money work for you…invest in stock or put money in a savings account to build interest.

     My last piece of advice is earth shattering, revolutionary….you’re not ready. Are you ready???

Okay.

Here we go.

…Splurge! Yes I said it, splurge. I one thousand percent know that you are probably ready to close this window and stop following my blog because this seems like the worst financial advice ever but I have my reasons.

     Splurging, I have found, has a deep cognitive effect. When we splurge, often times it curbs the appetite to shop for while. Unless you just have an insatiable desire to shop. But for lots of people, the point of bringing home a bunch of bags full of fun things or buying that TV they’ve been waiting for the last three years is just extremely rewarding and comforting.

     When your splurges are spread far enough and still controlled, they can actually be kind of helpful in terms of saving. But of course, don’t go into debt or do anything financially dangerous.

     Start off with one of these and dude…you are so in there! Get a second one in at 6 months? You’re golden.

To being better, and saving better.

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