Unless you were born into wealth and riches, most people have encountered financial issues at some point in time. As everybody knows, money makes the world go round. Without it, you'll be clinging on tightly or wanting to get off.
But regardless of whether you're deep in debt or simply want a bit more disposal income, there is almost always a way to improve your circumstances. And the New Year is a great time to set some goals and make a concerted effort to improve yourself and your money situation.
Here are five steps to establishing a stronger financial status, which should be accessible and actionable to all.
Get Started With Investing
It's normal to check the USD to SGD exchange rate before going on holiday. But if you choose to enter the world of financial trading, particularly the foreign exchange market (forex or ‘FX'), it will be a more common occurrence.
Forex is the largest financial market in the world, where transactions worth trillions of dollars take place every day. However, it is highly recommended to seek the assistance of a professional before you dive head first into the forex pool, as its one of the most volatile financial markets too. That volatility can work in your favour – but only if you know what you’re doing.
Set Some Financial Goals
Think carefully about why you want to improve your financial status. Is it to pay off a long-standing student debt or start saving for a property? Some people simply want to live more comfortably and go on the occasional holiday – it’s completely up to you.
By defining your financial goals, you will find it much easier to remain focused on minimising excessive spending and saving money wherever possible. You may even want to give yourself financial deadlines or create a visual representation of spending and saving.
Create A Budget
When it comes to improving your financial status, the devil is in the detail. In other words, it might seem simple at first but can take a great deal of time and effort to complete. This is especially true when coming up with a budget.
It is imperative that you track every single cent of your spending in order to truly benefit from a budget. Subtract all of your purchases and bills from your earned income to understand your situation. From there, you can eliminate unnecessary expenditure.
Organize Your Finances
With just a little bit of financial organization, your financial status will improve immediately. For example, making sure regular bills and payments are being taken off automatically will preserve your credit rating and protect your future financial health.
Another aspect of organization is having a back-up plan for the worst case scenario. Emergencies are a part of life and you never know when you'll need to spend money on your property, car, or health.
Be Strict And Smart With Money
Again, the little things can make a big difference. You might think that buying a barista-made coffee everyday or having a premium gym membership is absolutely essential, but don't kid yourself about this kind of spending.
Smartness is equally important as strictness though. So, claim all your applicable tax deductions, find cheaper alternatives to expensive items, and always shop around for the best deal.
What steps are you taking this New Year?