Resolving about new year’s finances

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A very popular new year’s resolution will be better budgeting for 2015.

This is one of those resolutions that many people make, and few manage to follow through on.

So we’ve got some tips for cutting down on unnecessary expenses and creating a budget that will last the whole year- and hopefully beyond.

We all work hard for our money. But sometimes it’s just too easy to spend it.

“Buying tea at Starbucks.”

“I probably buy a few more things for myself than I should.”

If you’re trying to start fresh with your finances in 2015, Holliswealth Investment Advisor, Mary Thorpe says you won’t succeed unless you write it down: “You buy a coffee, you buy someone else a coffee. it doesn’t seem like much in a day, but if you add that up in a month, it can add up to a substantial amount.”

She suggests tracking receipts once a week for two months and jotting down purchases so you become aware of impulse buys: “It’s making a list and keeping track and you start to think, Oh, why did I buy that?”

Once you’re aware, you’ll have a better idea of where to cut back.

From there you can create a budget. First, account for fixed payments like your mortgage and loans. then, set aside your savings.

To make the most of what’s left cut out bad habits. Bringing a bag lunch instead of opting for the drive thru every day can save you a couple hundred dollars a month.

Or say you give up one latte a week, eat in one night instead of dining out and buy a less expensive bottle of wine

Thorpe: That saves you $75 to $80 dollars a month, over 10 years that can be equal to about $15,000.”

To stay on track, ditch the debit and credit cards and use cash for small expenses like your morning coffee. If you run out before the end of the month- you’ll have to go without.

Make sure you’re realistic with your budget. If you completely cut out spending on things like entertainment, you’re more likely to get off track and give up your budget all together.