When done right, remote working can bring in enough money to help you build wealth. But if you’re still far from your financial goals, the New Year presents another opportunity to work on them.
New Year, new you, as most people say. Your past doesn’t dictate your future, after all.
But you can certainly use your mistakes and learnings from the past to build a better future. And here are 6 personal finance checks you can carry out to give you the best possible start this coming New Year.
Review your Budget vs. Spending
First of all, you should review your budget versus the actual spending from last year.
Did you follow your budget? If not, does your budget still make sense? If you don’t have a budget system yet, try looking into the 6 jars financial management method to start.
This is important because it will help you plan for future expenses.
Some people use very restricting budgets that are not sustainable. For example, they aim to spend just 40% of their 30,000 PHP per month income – but have a family of 5. That budget might be too tight, especially in the current economy.
Thus, review your budgeting vis-a-vis the current prices today. You might be disappointed with the resulting budget after. But know that you can improve it later on.
Check your Subscriptions and Recurring Expenses
Next is to pinpoint expenses that you can trim. To start, check your subscriptions and recurring expenses. This is essential whether you need extra funds (who doesn’t?!) or not.
Do you actually fully utilize all of your subscriptions? Or have you got streaming apps that you barely use? Are there memberships you can do without?
Discern if you can downgrade or cut certain subscriptions out entirely to free up more cash flow.
Review Your Insurance Coverage
Unexpected expenses can overwhelm your budget. That’s why you should have insurance. It can protect you from spending an exorbitant amount if something happens.
However, you should also review your insurance coverage.
What’s the coverage for your home, car, life insurance, and health insurance? Does it still suffice? If not, can you afford additional premiums? Or can you find a cheaper alternative?
Review Credit Card Benefits and Rewards
Credit cards are powerful financial tools. And you can definitely take advantage of these. But sometimes, we forget what our credit card benefits and rewards are.
So check your current credit cards. What rewards can you claim with your credit card points? Do they offer cashback? Can they waive your annual fee?
Some credit card owners overlook these simple things, but the right cards can save you a few thousands in fees. Or you could even exchange your points for a gadget (or two).
Make a Plan to Pay Down Your Debts
Do you have outstanding debts from last year? Whether for a business or for personal expenses?
Whatever it is, you need to set up a plan to settle them. You don’t want to be buried in debt in the succeeding years.
Check out these 10 steps to get back on track after blowing your budget.
Revisit Your Savings and Investment Goals
Real wealth means time freedom. Who wants to work forever? Thus, you should set up savings and investments with the goal to make your money work for you.
Got extra money to invest? You can try these simple investment options for relatively low-risk returns.
If you haven’t got any extra income, it’s time to find other ways to increase your cash flow.
How about an online job? Remote Staff offers long-term online jobs which you can build wealth with. With multiple remote working career options, you can surely find the perfect online job for you.
Register today! Cheers!
