Smart Money Tips For a Better Financial Life in 2019

Are you ready for 2019?

I know, you’re perhaps, still preparing for the biggest holidays of the year—the travels you may need to do during the holidays, the gifts and parties you have to prepare for and all that jazz.

BUT don’t you think it’s also a great time to START thinking about your next money moves in the year to come? After all, any money decisions you’ll make today will affect your financial future. Plus, wouldn’t it be more thrilling to say goodbye to 2018 with a complete and stable financial plan for 2019?

If you are prepared to rock 2019, here are some financial indicators to unlock and money moves to make to start shifting your life in 2019.

1.Diversify Your Income

As early as now, think of ways to earn more aside from your day job. Perchance getting a new property you can rent or study getting invested in ETFs stocks and bonds. You could also ponder running a small business if that’s your specialty. What’s important is you re-invest your money so it gets to multiple a couple more times more. Also, if you lose your job or fell into an unanticipated mess that affects your finances, you have the peace of mind that you still have something to fall back on.

2. Take on a Side Hustle

As I often say here, I think everyone should have a side hustle. Making a little extra on the side can significantly help in enhancing your income, which in turn, increases your wealth and allow you to attain more of your financial goals. The good thing about working on a side hustle is that you can mostly do it on your spare time and you wouldn’t have to interrupt your typical work day routine. Plus, you can work on your passion and earn from it at the same time.

Here are some side hustle ideas you can try.

3. Learn Ways to Spend Less

Perhaps one of the most significant things I’ve learned about money is that it isn’t how much you make that make you rich, it is your spending behaviors. Spend lesser than you make and you’ll avoid debts and be able to start building wealth. The good thing is that there are so many ways to spend less. It just needs a little creativity and a change in mindset.

ACTION TIP: Go back to the previous several months this year and make a study of your spending. If the goal is to spend less money, you must start with where you were spending more, and then make the cut. It helps if you keep a spending journal or record your expenditures through a budgeting app. If not, just have an honest chat with yourself and accept your weakness. Did you spend too much on fashion, entertainment, subscriptions you rarely even use, extravagant vacation, electronics? If you feel like you spent too much on some of these areas or feel that you can slash off spending by 10-20%, then you should be able to free up a good amount of money you can use somewhere else.

Once you’ve determined which areas you can spend less next year, zero in on a specific amount. This will serve as your drive and benchmark for progress. For instance, you can trim down entertainment expenses by $50 if you opt to work on your side hustles during the weekend and cut down time you spend on cinemas and restaurant dinners. Sure, it’s going to feel different at first, but face your spending demons and crush them with something you can do more productively.

4. Pay off Debts

It’s a goal for many people to pay down debts, but some just accrue more new debts without making a dent on the existing ones. If your goal is to pay off debts this year, the first thing you need to do is to stay away from debt as much as possible.

Next, look at your budget and determine how much money you need to pay down your target debts this year. For instance, you might need an extra $150 to settle your credit card debt this year finally, so make room for this money by cutting back expenses and increasing your income. That way, you’re not only paying the least due amount but flinging a couple more extra dollars to get off debt swiftly.

5. Make a Plan for Unexpected Money

How did you spend your tax refund or a large bonus this year? You may not have planned or expected getting a considerable amount, but you can expect how to spend or use it when you do.

Next year, make a plan for unexpected money. If you get a extra or commission at work, make an initial partition for that money. Perhaps you can save 50%, use 30% to pay off debts and then spend the other 20% your wants. Plan what you want to do with your tax refund as well. This is not going to be a strict advice, but it helps you stay on course and not lose track of your financial goals.

KEY TAKEAWAYS

2019 is yet another year jam-packed with new hurdles and opportunities. Even before the year starts, consider what you can already do today and make a plan of your next strategies. After all, it starts with a vision, then a plan, action, and then results. You can’t start a plan and not act on it. These money moves will help you shape up your finances better next year, but you have to do it with dedication and commitment.

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