New year, new you? Absolutely! But let’s focus on a glow-up for your money goals and how you can reach financial freedom, too!
Best of all? Whether you’re a money maven or a budgeting beginner trying to get your glam on while getting ahead, hitting those money goals doesn’t have to feel like you’re scaling Mount Everest.
Instead, I’ve got seven simple, no-fuss, actionable money hacks to share that’ll have you taking charge of your money, squashing stress, and setting yourself up for success like a financial queen. So get ready, and let’s dive in!
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Dream Big: Set Money Goals You’ll Actually Achieve
Every good — or great — plan starts with a vision, and your financial goals are no different. However, what success looks like for you will look much different for the next gal because everyone’s goals and situation differ.
Start with your money goals. Are you looking to knock out debt? Are you dreaming of your next vacay? Do you want to stash enough cash to finally buy a home?
S: Specific
M: Measurable
A: Attainable
R: Relevant
T: Time-Bound
In other words, avoid telling yourself that you’ll “save money this year.” Get specific using the SMART goal framework as your guide: “I’ll save $5,000 for a car down payment by December 31.” Now, that’s a goal worth celebrating!
Own It: Review Last Year’s Wins and Fails Like a Pro
Before building your new year’s game plan for financial freedom, take a moment to reflect on the past year.
What worked?
Maybe you finally canceled that overpriced gym membership you never used or rocked meal-prepping like a pro. Perhaps you landed a new job or a better salary. Or you could have finally paid off a large debt.
These are great wins, but life isn’t always a win. Sometimes, things go sideways.
What about those subscriptions you forgot about? It happens to all of us. Impulse buys often seem necessary at the moment, but rarely are, which is why smart shopping can save a ton.
The point? Learn from your wins and the financial hiccups. It’s about progress, not perfection. So take a deep breath and let go of the “would haves, could haves, and should haves” of the past year, and start the new year off fresh and ready to rock your money goals. You got this!
Build Your Budget Blueprint for Financial Freedom
Whether you’re a planner or a “pantser,” budgeting is your best friend for personal finance and achieving financial freedom. Think of it as the ultimate tool to boss up your bank account.
Budgeting need not be difficult, either. Create a simple budget — one that works for your lifestyle. That way, sticking to your budget for the long haul is much easier. While you could use pen and paper, there are some fantastic digital budgeting tools available today that make budgeting way easier and more efficient, like WalletHub Premium.
Start by jotting down your income and fixed expenses and the costs essential for the four walls of living (rent, utilities, food, transportation).
Next, create a “bucket” for everything else, including fun, and divvy up what’s left. Don’t forget savings! Having a financial safety net for life’s little — and big — emergencies is crucial!
There are several budgeting methods out there, such as the 50/30/20 rule. This method directs 50% of your cash for essentials, 30% for flexible spending, and 20% for savings and debt payments.
An alternative is zero-based budgeting, which assigns a name to every dollar you earn, starting with your four walls of living to savings and fun money.
Use the method that works for you.
Simple Hacks to Slash Debt and Free Up Cash
Got debt? Many of us do, unfortunately. However, having debt doesn’t have to be a life sentence. Want to break the chains holding you back from financial freedom? Then check this out.
List all your debts on paper or screen. It’s always easier to tackle them when you make them physical and visible.
There are two ways of paying off debt:
- The debt avalanche
- The debt snowball
With the debt Avalanche, you’ll first pay off the high-interest debt to save money on interest in the long run.
With the debt snowball, you’ll pay your smallest debts first for quick wins and extra motivation to keep going.
Pro Tip: If you’re like most people, chances are good that you have credit card debt. Pick up the phone and chat with your credit card company. You’d be surprised — sometimes, a simple conversation can score you a lower interest rate! You’d be surprised by what they might agree to if you ask.
Supercharge Your Savings with These Easy Moves
Ready to crush your savings goals this year, too? Let’s make it happen! I’ve also got a few easy hacks that’ll ramp up your savings quickly with a few simple tweaks.
Automate Savings
Schedule cash transfers to your savings account. Or, if you have an automatic payroll deposit, divvy up those deposits by allocating part of your funds to checking (to pay your living expenses) and the rest to savings. You can adjust it according to what makes sense for you. The Frugal Hen allocates 80% of her paycheck to checking and 20% to savings. Easy peasy lemon squeezy!
Round Up Your Purchases
Some digital apps allow you to stash cash using your spare change every time you use “round-ups.” In other words, these apps round up every purchase to the nearest dollar. The “round-up” goes to savings or investments, depending on how you’ve set up the app.
Eliminate Small Costs
Those morning coffees from the coffee shop (or lunches out) add up fast. Brew your coffee at home and brown-bag your lunch with a chic lunch bag to watch your savings grow.
And if you gotta have the coffee shop flavors, hear me out. You can easily DIY the experience at home. Use home-brewed coffee — or an iced coffee maker for the cold stuff, some Frugal Hen-approved skinny coffee syrups, and your favorite toppings (Whipped cream? Yes, please!) Either way, you’ll save far more by DIYing it than paying someone else to make it.
Staying on Course to Reach Financial Freedom
Unleashing your inner money maven does not mean your first go at budgeting will be perfect. Like all things, a budget sometimes needs adjusting. Maybe you landed a new job with a different salary, scored a killer raise, or have some expenses creeping up. Monitor your progress and tweak your budget as needed.
Embrace tracking like your best friend. Apps like WalletHub Premium let you track everything in one convenient place and even offer alerts to keep you from overspending. It’s easy to use and makes budgeting a breeze. Best of all? With all its great tools, WalletHub Premium helps unleash your inner money maven and rock your money like a boss!
Build Your Rainy Day Emergency Fund
Remember to build your emergency fund. So. Very. Important. Having money in the bank when you need it is one crucial step in your journey to financial freedom. Most folks need at least 3 to 6 months of living expenses saved. However, if you run your own business, have health issues, or have job (or economic) instability, aim to save more, like 6-12 months.
Life’s emergencies become real, heart-thumping financial crises when there’s little to no money in the bank to cover them. But once you’ve adequately padded your savings account? They’re more like financial hiccups or annoyances.
Why Premium Budgeting Tools are Totally Worth It
A pen-and-paper budget is a great start, but if you want an elevated experience, then premium personal finance tools can supercharge your financial journey. A few examples of some of the perks you’ll find include:
- Daily credit updates to stay on top of your score
- Custom debt payoff plans to help you tackle what you owe
- AI-powered money-saving tips to cut waste without sacrificing fun
- Identity theft insurance for peace of mind
Having a premium budgeting tool is like having a financial fairy godmother at the click — or tap — of a button.
Celebrate Financial Freedom: Crush Your Money Goals All Year
Achieving financial freedom is definitely doable, but it isn’t a one-time win — it’s a lifestyle. So start with small, intentional steps, stay consistent with your efforts, and remember to reward yourself along the way.
Each money milestone you reach brings you one step closer to the life you’ve been dreaming about.
Ready to take control of your money and future? Try WalletHub Premium for a brighter financial future—and make this your best year yet!
Make the new year your year to shine by giving yourself the financial glow-up you deserve.
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Very informative, once again! Thanks!