| Hi Taylor:
I'm determined to make good on my New Year's resolution to save
more money. So… how do I do that? - Valerie
Hi Valerie: The first step for making a resolution stick is usually
asking for help, so you're already off to a great start! Think of
the goal as a faraway destination, and your job is to figure out what
roads you'll take to get there. Here are three steps you can take
to help with this particular New Year's journey.
in a budget. The New Year is a great time to start budgeting
or begin a new budgeting approach. Since your goal is to save
more money, you have to figure out what options you have for spending
less. With a detailed budget that categorizes your expenses, you
can pinpoint the areas in your life that could use a dose of frugality.
Set a realistic spending limit you can stick to, then move the
money that would have been lost to dining out or entertainment
and move it into a savings category. Committing to a strict budget
can be tough, but hopefully that New Year's determination you
feel will help you get the job done.
2. Dispose of the recurring bills. I've been a big fan of
the Truebill app for this purpose. The service scans your accounts
and gives a report of all the subscriptions that are siphoning
away your money. The vast majority of people pay fees they don't
even know about, so this app can save you money in a hurry. You
might think you need five different streaming services, but seeing
them lined up next to each other and clocking how much it costs
you each month might be enough to change your mind about that.
3. Invest. Do you know the best way to stop spending money?
Move it into an account where you won't be tempted to spend it!
I can't tell you how many people don't invest because they're
afraid of losing liquidity, and yet maintaining too much liquidity
is the basis of their financial problems. You won't have to deal
with the constant temptation to spend dollars just sitting in
your checking account. The fear of investing is strong but illogical,
so do your best to overcome it.
| Everyone will
enter 2022 with the motivation to make sweeping changes, but only
a few people will take concrete steps to make those goals come true.
Wishing you a happy and successful year!
© Taylor Kovar
December 27, 2021
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Information presented is for educational purposes only and is not
an offer or solicitation for the sale or purchase of any specific
securities, investments, or investment strategies. Investments involve
risk and, unless otherwise stated, are not guaranteed. Be sure to
first consult with a qualified financial adviser and/or tax professional
before implementing any strategy discussed herein. To submit a question
to be answered in this column, please send it via email to Question@GoFarWithKovar.com,
or via USPS to Taylor Kovar, 415 S 1st St, Suite 300, Lufkin, TX 75901.