Financial Freedom In The New Year ‒ 5 Steps To Achieving Meaningful Money Resolutions
- Brainz Magazine
- Jan 16, 2023
- 3 min read
Updated: Mar 10, 2024
Written by: Joey Ruffalo, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
It is the start of another year and the perfect time to start taking control of your financial future. We will cover five steps towards achieving financial freedom in the new year so you can make a fresh start toward a better financial future! With data-backed advice from financial experts, you can begin making meaningful resolutions that focus on debt reduction, saving, and improving your overall well-being.
1. Make a Budget and Stick to It:
A budget is the foundation for any financial resolution. I tell my clients that the budget is the foundation upon which their financial house is built. Everything starts and ends with the budget. Knowing where your money is going is the first step toward plugging any leaks. Then you get to decide how each dollar works for you. Every dollar has a job to do. Make it count! Decide how much you can realistically afford to save each month and prioritize goals like paying off debt or saving for retirement. There is a multitude of apps that help you. This article featured on jrfinancialcoaching gives you some examples.
2. Establish (or Re-Establish) an Emergency Fund:
How prepared are you if something goes wrong? Having an emergency fund with at least three months’ worth of expenses saved will help provide peace of mind—especially if you become unemployed or incur unexpected costs. Begin by having an emergency fund of at least $1000. If you have children or an unstable job, increase your emergency fund accordingly. The emergency fund is your buffer. It is there to insulate you so you can continue to work on your goals, such as becoming debt-free or financially independent.
3. Automate Your Savings Goals:
Automation makes saving toward your financial goals more manageable and helps prevent temptation from derailing your progress. You can automate transfers into savings accounts or set up automatic investments in mutual funds or ETFs so that your money works for you even when you're not actively thinking about it. This transfer is something you should do every paycheck. You may need to create a separate bank or savings account to save money towards those goals.
4. Reduce Expenses Where Possible:
Every dollar counts when it comes to resolving debts and reaching other financial goals—so take action by evaluating what unnecessary expenses you can cut from your budget. Consider downsizing subscriptions, meals out, entertainment, and shopping sprees to free up more capital for savings. Every dollar freed up gets reassigned to a new job according to the budget.
Christine Luken gives some great tips on how to save money on food, for example.
5. Get Professional Guidance When Necessary:
If debt, such as credit card debt, student loan, or automobile debt, has become crippling, then don't hesitate to seek professional guidance. A financial expert who can help create a plan that fits within your means and sets realistic milestones toward achieving financial freedom. A financial coach can offer guidance toward understanding your money habits.
The start of a new year is the ideal time to take charge of your financial health and reach true financial freedom. With five easy steps, you can create a budget, invest in an emergency fund, automate savings goals, reduce expenses, and gain professional guidance. Invest in yourself and make this year the year you achieve financial security and experience financial freedom ‒ take control of your finances today! Make meaningful financial resolutions this year, and you'll be on your way to achieving true financial independence.
Joey Ruffalo, Executive Contributor Brainz Magazine
Joey Ruffalo, MBA-FP, is the owner of J.R. Financial Coaching. He is a 1 International Best Selling co-author of the book The Transformation Within and the 1 New Release An eBay Seller’s Guide to Financial Planning. Joey has paid off over $370,000. Joey has been a Top Rated Seller on eBay since 2000. Joey is a leading expert in financial planning for your eBay and e-commerce business. A regular guest expert featured on the eBay for Business podcast, Joey's insight into the reselling community is invaluable. Having run several successful small businesses, Joey knows what it takes to succeed. Combining his love of selling with his passion to help others, Joey offers a unique perspective on financial planning.
