Fixing your money problems in just 12 months is achievable with determination and a plan.
The starting point is a spending freeze. Eliminate non-essential expenses and focus solely on needs, such as meals, rent or mortgage, and commuting costs. This resets your spending habits and provides money to address liabilities and start saving. Use this momentum to build a budgeting plan, assigning a purpose to each dollar.
Next, find ways to increase your income. Engage in freelance work, declutter and sell things, or upskill to advance your career. Every additional bit of income should be directed toward financial goals, like saving for emergencies or eliminating liabilities. Speaking of debt, adopt the methods to pay manage money off debt—starting with the smallest debts or targeting the highest interest rates, based on your strategy.
Acknowledge small wins along the way to maintain your drive. Whether it’s eliminating a debt or saving your first $1,000, each success proves that you’re making your goals a reality. With focus and an actionable strategy, a complete shift in your finances in a year isn’t just a wish; it’s your new reality.