Okay, so I have my top financial goals in mind. How do I take action? How do I find the money to fund my goals?
(Can’t name your top three financial goals? Maybe you should review our “back to basics” series.)
Here are the top approaches you should use to find the “extra” money necessary:
Budget
No one likes the word, and fewer like the action. Luckily, you don’t have to be a perfectionist. Even a broad budget will help keep your spending in line. However, the more detailed your budget the more control you’ll have over your money and the more likely you’ll uncover more available cash. Geezeo’s budget tools include setting category-specific “spending targets”. Some set spending targets named “Savings” or “Investing” to stay on mission.
Tax Savings
Adjust your withholding to accurately reflect your tax obligation. Dump your fat yearly tax refund. Instead, take an increase in weekly pay. Put this money to work for you directly. It takes discipline but it can pay off because this money is earning interest for you year-round instead of returning to you interest free from Uncle Sam.
Cutting Expenses
Oh, no! No one likes this suggestion. But, cutting expenses can be the most effective strategy since many of us are prone to overspending. The trick with cutting expenses is to really cut them — and not use reduced spending in one area as an excuse to spend more in another category.
Look at your budget carefully and itemize all expenses. Evaluate each one as a necessity or indulgence and trim accordingly. One way to stay motivated is to take the money you “saved” and actually put it in a separate savings account or directly toward your goals. This habit makes the money “saved” more concrete.
Earn more
Obvious advice, no? Look for ways to increase your inflow with a second job or other income producing activity. Earmark this additional cash flow to put toward your financial goals. Separating it from your “regular” income or budget will help you from inadvertently spending it. Here are five ways to make an extra $1,500.
