- Live within your means.
- Save first, spend afterward.
- Invest wisely – know how your dollars are being put to work – they might as well be doing something good in the world.
- Know how much you spend on necessities vs. discretionary items.
- Plan for everyday expenses and one-off expenses as well as allowing for unexpected expenses.
- Treat the numbers objectively. It’s better to pay off a high interest credit card first than a low interest one.
- If your expenses are higher than your income you have two options – reduce the amount you are spending and increase the amount you are earning.
- If you choose to carry debt, understand the consequences upfront.
- Use banking software (if available) to track your spending so you have an accurate picture of what you spend, not just a guesss
Right now you are looking at the whole year, but of course things can change. Reassess mid-year if needed, or if big changes happen in your life, such as a new job, raise, or large unexpected expense.
Feel free to adjust your goals as needed!