Transform Your Finances In 5 Simple Steps

With the new year rolling around, then you might be thinking about ways that you can improve your finances. Having a new year can be a great time to start afresh. So if last year wasn’t the best financially, whether personally or for your business, then now could be the time to get things in order and make a few changes. Then this time next year, you could be looking at how well you did and how you will continue with your good financial planning. But how to go about it? Here are some simple tips to help you to transform your financial life this year. 

Take A Look At Your Finances 

January is a good time to look at your finances and take your head out of the sand. Taking a look at what you are paying out to different things, as well as what you are earning is good from time to time. Things can change, even ever so slightly, so it is good to review and refresh. Check things like pension payments and any investments that you currently make. It could be worth looking at how your investments are going, as we can get a little lax with them from time to time and just let them tick over. But you only want to have the ones that are going to help to make your money. 

Clear Financial Clutter 

Tidying up and looking at your finances is a good thing to do and can make life a little easier. Shares, ISAs, and pensions that have built up could be all over the place; financial clutter as it can be called. Unless you have a filing system in place, then do you know where your money it and what is going on with it? Get the paperwork out and work through it, making a list of all of the things that you have and what comes in and out. Check a few stock message boards to make sure that you know where your investments are at. Should you be getting more or selling some? You won’t know if you’re not checking regularly. 

Build Up A Savings Portfolio 

Ideally, everyone should have around six months wages saved up, three at the least. Then, should anything happen, you’re covered while things are figured out. But in a time when wages aren’t rising as fast as the cost of living, it can be pretty difficult to save any money. But, building up a supply, whether slowly or not, is a good step to be looking to do. Share-based investments could be a consideration if you want to get more for your money than you would in a standard savings account. However, there is risk with that. So if the idea of that doesn’t suit, then you know that looking for the best savings accounts and ISAs is what you need to do. image 

Be Realistic 

When it comes to your financial goals, you do have to sit back and be realistic about how you want it all to work. It can be a dream to be able to retire early. But if you’re not really prepared to make the lifestyle sacrifices to get to that goal when you sit down and think about it, then it isn't a good goal to have. So be realistic when it comes to setting yourself goals. What could actually be achieved and what are you willing to sacrifice to make sure that it happens? 

Little & Often 

If it can be hard for you to physically invest a large lump sum of money, then the best thing that you can be doing over the year is to invest little and often. We get it, putting a lump sum of money into something can feel like a huge deal. You'll end up stalling and that can end up reducing the productivity of your turnaround. Meaning that you’re much less likely to do it. So instead, invest your money in things over the year, but small amounts at a time. It will make it much more likely to for the investments to happen. Little and often is much less painful than going to invest a lump sum of money. 

Financial Freedom Found

So there you have it. Setting yourself some realistic goals that are achievable, as well checking out your financial admin, can be some of the best things to do for your finances this year. Plus, saving a sensible amount of money each month is good too; it is never too early to start and build your savings and getting things in place for your future.


I hope you enjoyed this article about how to transform your finances simply and effectively.

Interested in more articles about frugal finance?

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