Add This to Your New Year’s Financial Goals

| 2017-11-24
OK. 2017 is almost up, and you know what that means! That’s right… New Year’s resolutions! Whether you’ve already thought of your goals for the upcoming year or not, we at Entertaining Money believe the topic of this article definitely needs to be considered. For 2018, one of your top financial goals should be reducing spending.

Reduce Spending!

Let’s be honest. Americans like to shop. There’s no doubt about it. Shopping in America almost seems like a birthright. However, the problem is that way too many of us are falling deeply into debt because of our spending habits. And it’s dangerous. As of matter of fact, credit card debt is currently at all-time highs. Credit card debt, also known as revolving credit, stood at $1.021 trillion in June 2017.

One reason that Americans are taking on more credit card debt is high costs of living compared to low worker wages. In other words, life is too expensive for the paychecks workers receive. The shortage of available funds must be made up in some way. On the other hand, however, there are some people who simply have poor money management skills. These people are living beyond their means. When a person lives beyond their means through debt usage, it puts them deeper and deeper into the debt hole.

Instead of spending foolishly in 2018, develop a plan. We all need a plan because that’s the only way to know where we are going financially! And cutting expenses is something that most people can do! You should take the time to review bank statements from the previous few months – or entire year – to see where your money is going and the areas you can reduce spending. It could be dining out, clothes purchases, or entertainment. Whatever the case may be, find out where you can reduce spending!

The reason this is so important is the money you are able to save each month can be invested for future growth. The basis of financial education is knowing how to have your money work for you and increasing your wealth. This should be your goal! It’s possible and you can do it, but you first must develop the discipline to cut out unnecessary spending! As Dave Ramsey puts it, “If you will live like no one else, later you can live like no one else.”

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