Turning your finances around in just 12 months is within reach with focus and commitment.
The starting point is a no-spend month. Cut luxury spending and focus solely on needs, such as food, rent or mortgage, and travel expenses. This resets your spending habits and releases funds to pay off loans and grow your emergency fund. Use this progress to create a zero-based budget, assigning a purpose to each dollar.
Next, look for additional revenue. Take on freelance gigs, sell unused items, or learn new skills to get a better-paying position. Every newly earned money should be used for your priorities, like building an emergency manage finance fund or paying off debt. Speaking of debt, adopt the snowball or avalanche method—paying off the smallest balances first or focusing on high-APR debts, depending on your preference.
Acknowledge minor achievements along the way to keep your momentum. Whether it’s eliminating a debt or hitting your initial savings goal, each success shows that you’re on the path to financial success. With focus and an actionable strategy, a money turnaround in a year isn’t just a wish; it’s your achievable success.