New Years Resolution: Better Financial Management

Are you a New Year’s resolution kind of person? It may not surprise you to learn that one of the most common resolutions is better financial management. Whether or not you’re the resolution type, any time is a good time for better money management. In this post, Edgewater CPA Group provides tips and tricks to help you achieve your financial goals.

There’s an App for That

Financial money management apps abound no matter what device you use. Some of the more popular ones allow you to connect to your bank account, create budgets, track your spending habits, develop specific savings goals, and even pay monthly bills. Apps exist with a built-in algorithm that monitors your balance and automatically transfers small amounts of money to savings buckets you pre-determine. With these apps, you can save for travel, rainy days savings, or anything else you identify! The apps do much of the work for better financial management and help you develop better habits. 

Track Your Spending

Whether or not you use an app to do it, better financial management means tracking your spending. If you haven’t been monitoring it, you may be surprised how much is going out the door every month. Subscriptions are one area where you can probably shave off some spending. Another might be eating out. 

First, take a personal inventory of your monthly spending (this goes for business accounting, too). Next, determine what you need to cut. Then, identify areas where you can improve. For instance, instead of paying extra fees to third-party food delivery systems, see if your local restaurant delivers. That way, you save both yourself and the store some money in fees and support your local business. Finally, make a budget. 

Saving and Investments

When it comes to budgets, many people spend first and then determine whether there’s anything left to save or invest. However, this approach is backward. Prepare your budget by determining your monthly income. Then, list all your debt and expenses (installment credit cards, mortgage, car payment, utilities, etc.) Then, set aside money for savings and investments. What’s leftover is for discretionary spending. 

Don’t Live Beyond Your Means

In a world of social media influencers, it’s easy to believe that everyone owns, or should have, designer brands and travels extensively. Some people do, and others simply have a pile of debt. Better financial management means living within your means. Living within your means looks like spending only what you have, and making a plan to pay down debt, increase savings, or earn more income to accommodate your lifestyle. 

Get a Good Finance and Tax Professional

One of the best things you can do for better financial management is to hire a financial services professional. Edgewater CPA serves clients in Carmel, Fishers, Westfield, and Hamilton County. We support individuals and business clients who need accounting services, business tax strategy, payroll services, cryptocurrency management, and more. Call (888) 317-4835 to schedule a consultation.