Here’s to New Beginnings!
As We Start 2019, What’s More Exciting Than Starting Something New?
Beginnings are always exciting. Whether it’s a job change, a new house, or a new relationship, starting something new has a suspense and mystique about it. Maybe it’s because we wonder what’s going to happen? Or we think about what could happen. At the start there is always limitless potential. Potential that may or may not be realized. I love beginnings.
I know this is the time of year when many people are busy making resolutions that will last about three weeks or less. And maybe you’ve always resisted the urge to make a hasty resolution out of fear that either you won’t have the fortitude to keep it or it’ll be too difficult. But the sentiment is in the right spirit. And whether or not they follow through, they still are trying to start something.
Of course it’s always a good time to start something new. Especially if that new thing is a change for the better. According to an old Chinese proverb, “The best time to plant a tree was twenty years ago. The second best time is now.
This quote applies to your finances too. If you haven’t touched your finances in months or even years, why not start something new this year?
Why Should I Start Now?
The longer you wait to address your financial situation, the worse it will get. No action can actually be worse than taking the wrong action. There is no standing still. If you’re not moving forward, you’re going backwards.
This is true when it comes to your job/income. When was the last time you received a promotion or raise beyond a cost-of-living-adjustment?
This is also true when it comes to the other side of the balance sheet, your debt. If you aren’t working a plan to eliminate your debt, it won’t just disappear on its own. You’ll end up spending thousands of dollars in interest, and you’ll always seem to always be a month behind when it comes to your credit cards.
Your debt is only increasing, and your income is only stagnating.
Time can be your friend instead of your foe. The sooner you start your financial transformation, the sooner you can start to reap the benefits of compounding interest. Both by saving interest on debt repayments, and earning interest from saving and investments.
Or time can be your worst enemy. You’ve heard the old saying, “Time waits for no man.”? You only have so much time to save for your future. The more you waste now, the less time you’ll have for compounding returns later.
The moral of the story? Don’t wait! Start your financial transformation today!
How Do I Begin?
The first thing you need to do is take a snapshot of where you are currently. Are you drowning in debt? Do you have some savings, but you need more? Maybe you have no idea where your money is going, and you need to set up a realistic budget.
Whatever your situation, just knowing where you are is the first step. You can’t really take action without knowing what actions to take.
If debt is your problem, start by listing all your debts on one sheet of paper or spreadsheet. You may be able to lower your total payments by refinancing. You may also see quickly where you throw some extra money to eliminate a smaller debt.
Perhaps you need a budget? You make good money, but you never seem to have any of it. Because you have no idea how you’re spending it. A budget paired with tracking your spending can work wonders for your finances. You’ll find money you didn’t think you had! And make sure to come back next week to learn how to make the same budget sheet that my wife and I have been using for years.
Starting a budget or creating a debt repayment plan are great ways to begin a new year.
Change is Inevitable.
A new year is upon us, and change is coming. The big question is, are you going to initiate that change for the better, or will you do nothing and have to react to the changes as they come?
And you don’t have to call it a new year’s resolution. Just a new beginning. Or maybe a second chance. The most important thing is not what you call it, but that you actually do it.
Your future self will thank you. And this time next year you’ll be able to look back on the beginning of 2019 as the moment that you initiated change in yourself and your finances.
Are you in need of financial changes? Is this the year for your new beginnings?
Please leave me a comment and let me know. Thanks for reading and sharing.