The new year is a great time to get a fresh start. And while you’re making a pact to get back into a morning yoga routine or to cut down on the carbs, don’t forget to also prep your finances for the new year.
It’s not as hard as you think to turn your money situation from a frowny face emoji to a muscle arm emoji. Here are 10 ways you can shape up your finances for the new year in just 10 minutes a day:
I’m a huge fan of the “set it and forget it” approach, and autosaving is my Number 1 favorite money tactic. With minimal effort, you can set it once and you’re golden.
Don’t be discouraged if you can’t save as much as you’d like. Even automatically saving five dollars a week into your emergency fund adds up to $260 in a year. Double that to $10 a week, and you’ll have $570 buckaroos. Not too shabby!
Make a Date With Your Spending Plan
Check yourself before you wreck yourself—with your budget, that is. It’s important to remember that your budget is a living, breathing thing. It changes as your money situation evolves, and what worked last year may not work next year.
Did your income change from switching jobs? Did you have to move? Are you spending more money on quality groceries? You get the picture.
Case in point: This was my year of “forced upgrades.” I moved and bought a new car. In turn, my monthly expenses went up, and I had to make changes to my spending plan.
Time Your Bill Payments With Paydays
If you are member of the gig economy, and get several paychecks at different times of the month from different gigs, staying on top of your bills can be challenging.
To ease the cray, time your payments so they sync up with when you get paid. For instance, if you get paid from a particular gig on the 10th of each month and your cell phone bill is due on the 15th, sync up that payment with your cell phone bill. If you’re a Chime Member, you can get paid early – making it easier to pay bills earlier as well. All you need to do is set up direct deposit with at least one employer.
Turn On Alerts
By setting alerts on your credit cards, you’ll get notified if a transaction exceeds a set amount, or if a payment was made online instead of in-person. This can help you keep your spending in check, as well as keep you informed of any fishy activity on your cards.
Check Your Net Worth
It’s easy to get caught up in the illusion of wealth—flashy cars, designer clothes and McMansions. But true wealth can be boiled down to one thing: your net worth. You can determine your net worth by adding up the amount of money you have in the bank, as well as the value of your car, house and any investments. Subtract your debt from this amount and you now know your net worth.
An easy way to track your net worth is to use a money management app. Just poke around the Apple Store or Google Play and you’ll find no shortage of free apps to help you track how many Benjamins you’re stacking.
Prioritize Your Money Goals
You likely have some of these financial goals—paying off your debt, saving for an emergency fund and saving up to buy a house.
If you’re like me and have a gazillion goals, it’s best to prioritize them. This way you can focus your efforts and yield greater results. For 2019, for example, I’ll prioritize bolstering my retirement, saving for my first home, and socking cash away for my personal projects.
Link Up with a Money Accounta-Buddy
Teaming up with a buddy to help keep you accountable with your money goals is super helpful. This may mean hopping on a Google Hangout with a friend once a month to keep each other in check, or having casual conversations in person.
What works for me is to just chat about money. I am lucky to have a handful of money accounta-buddies, and we talk about everything from paying off debt, to saving for retirement, to any issues that arise. Talking about money with trusted pals is cathartic. And it feels good to know you’re not suffering alone.
Link Up a New Habit to an Old One
The majority of our actions are rooted in habits, so try forming a new habit by linking it to an existing one. For instance, if you meditate for a few minutes every day, commit to checking your recent transactions or net worth right after that.
Figure Out an Easy Win or Big Win
To make progress on your money situation, you can either focus on an easy win or a big win. An easy win is something that will give you a boost in the beginning, while a big win will help you make greater strides.
For instance, if a money goal for 2019 is to cut back on your expenses, an easy win would be to lower your cell phone bill. You only have to negotiate once and then enjoy a lower bill. A big win would be to cut back on your food expenses. While it requires more work to lower your grocery bills, this can help you net greater savings.
Look for Forgotten Money
This is one of my favorite feel-good money tactics. In-between wading through your debt load and coming up with a plan to bolster your emergency fund, finding forgotten money gives you a psychological lift.
To start, look in places where you may have forgotten money stashed away, like funds in a savings account you once opened but haven’t used, contributions to a retirement account through a former employer, coins in your “spare change” jar, or even cashback credit card rewards.
The Best Time to Start Is Now
There’s no time like the present to begin improving your money sitch. Using the 10 suggestions here, you can spend just 10 minutes a day taking positive actions. Just remember: No matter how many financial mistakes you made in the past, you can make changes for the better starting right now. What are you waiting for?