2016 Personal Finance Strategies

Sarang Ahuja’s latest post:

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“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” ~Warren Buffet

As we enter into a new year, it is now time for you to gain a strong stance over your finances. By understanding and internalizing the overall health of your finances, you will be able to evaluate and plan for a better tomorrow. This type of organizational understanding will give you the ability to outline your personal and financial goals and additionally alter any necessary steps so that you can be on a better and more lucrative path. Just like the quote above, it can take five minutes to ruin your reputation. By taking the time to plan your finances, you are not just avoiding and preventing those financial flaws, but also building and securing your financial future.

Below, you will find four key steps in evaluating your finances. Make sure your review and internalize these steps. This type of action plan will help alleviate those future financial concerns and set you on the right path for 2016.

Money-Management

1. Review Your Past Investments and Financial Status

As we enter into 2016, now is the time to review your accounts. If you have not looked at your accounts for the past three-to-six months, try and spend the time to check in and evaluate them. Any allocations, investment performances, or contribution rates and their changes should be noted. If possible, do a bit of the math and note the overall monetary changes each investment made during the 2015 year. In addition, begin asking yourself a variety of questions such as: Is this where you wanted to be when 2015 ended? Is there room to save more? Are there other options you want to invest in? Are you happy with the growth of your investments? Are there any investments you want to change? By reviewing and evaluating these questions, you will be able to understand what changes you can make or alter so that your portfolio is financially intact.

3. Evaluate Your Expenses

With the holidays passing, many people find that they often overspent on a variety of gifts and presents. If you are one of those individuals, take an hour or so to review your overall monthly expenses from the 2015-year. By calculating these figures, you will be able to compare new and innovative opportunities to save each and every month. Yes, this may require you to sacrifice certain things such as dining out or spending on X-vacation, but at the end of the day, you want to make sure your financial status is at a strong and healthy place. If you would like to learn more about how to calculate these numbers, take a look at this helpful financial calculator here.

3. Preplan for the Big Expensive Moments

Like any person, you will eventually end up spending some large amount at one particular time. This can often be seen for gifts for birthdays or a weekend vacation with a love one or friends. One thing to keep in mind is that you want to be smart about your expenses. Start off by mapping out your financial expenses each year (rent, food, car payments, cost of living). Afterwards, think of specific events that you know will come up such as birthdays, graduations, and vacations. By keeping these expenses in mind, you will be able to control your monthly spending in the most strategic and profitable manner.

4. Create Financial Goals for 2016

Regardless of how your finances looked from the previous year, see 2016 as a window of opportunity to move into your financial goal. Once you have laid out a holistic view of your overall finances, try and create several financial and personal goals that are specific, measurable, and tangible. For example, say you want to save $5000.00 dollars for one of your accounts within a span of three months. Keep that number in mind and plan out a strong and attainable action plan of how to get there. This can also be done for vacations, gifts, or personal needs. But at the end of the day, you want to grow your money. Set multiple goals for yourself this year and stay on track to that number.

from Sarang Ahuja http://ift.tt/1O921Az

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