Turning your finances around in just 12 months is possible with dedication and effort.
The starting point is a month of no unnecessary expenses. Reduce luxury spending and spend only on necessities, such as meals, shelter, and travel expenses. This helps you rethink spending and provides money to pay off loans and start saving. Use this energy to create a zero-based budget, giving every dollar a job.
Next, find ways to increase your income. Take on freelance gigs, get rid of unneeded belongings, or learn new skills to get a better-paying position. Every extra dollar earned should be used for your priorities, like creating a safety net or paying off debt. Speaking of debt, use the debt repayment strategies—paying off the smallest balances first or addressing the costliest loans, respectively.
Reward yourself for minor achievements along the way to maintain your drive. Whether it’s eliminating a manage finances debt or saving your first $1,000, each success demonstrates that you’re on the path to financial success. With discipline and a clear plan, a money turnaround in a year isn’t just a goal; it’s your achievable success.