No matter where you’re at in your financial journey, there are simple steps you can take to improve your finances. In fact, it’s a good idea to do a financial analysis every six months so you can get back on track toward your goals and solve any issues before they get out of hand. 

If you’d like to take steps to improve your finances, here are 14 simple things you can start doing right now, brought to you by TaxGlobal.

1. Make a budget 

A budget is the best starting place to improve your finances: it helps you track how much you make and how much you spend each month so you can adjust accordingly. A budget will alert you to any areas where your spending is too high, and give you ideas of how to increase your surplus income, or the money you have left over after all necessary expenses are paid.

Make a chart (you may want to use Excel or a budgeting app or worksheet), then put in your income and expenses, such as rent, mortgage, utilities, groceries, gas or public transportation, debt, medical, entertainment, etc. You may want to divide things into categories rather than put every single expense in its own field. 

2. Track your spending

Maintaining a budget involves tracking your spending, and while this can be tedious, it’s crucial to improving your finances. Write down every expense: including small things like lunch, coffee, and movie tickets. These little expenses may not seem like they impact your finances significantly, but if you track them over a week or a month, you’ll find that they add up.

Whether you do this by saving receipts, paying for everything with the same card and checking your record of transactions, or using an app to record purchases is up to you. Just find something that works. 

3. Reduce your credit card use

Credit cards offer plenty of incentives like cash back and rewards, but if you find that your credit card purchases are getting out of hand, or if you’re facing high credit card debt you can’t pay off, it’s probably time to limit your credit card use. 

Of course, there’s a time and place for using your credit card, but if you can use cash or a debit card instead, you probably should. After all, it only takes one month of forgetting to pay for you to wind up with interest charges and snowballing debt.

4. Use coupons

In the age of the internet, finding coupons is easier than ever—and you should be benefiting. Most stores offer online coupons that can help you save $10 or more per week, and over the course of a year, that’s $520, which is nothing to scoff at.

5. Set achievable goals

You may dream of owning your own home or traveling to Australia, but those may not be realistic as goals. Financial goals are helpful and can motivate you to get your finances in hand, but you have to keep them achievable. 

Start by calculating how much you’ll need, then figure out how much you’ll need to save and how often to meet that goal. For instance, if you need $50,000 for a down payment on a house, you could set a goal to purchase a home in 5 years, which means you’ll need to save $10,000 a year, or $833 a month. If that’s not realistic, you may need to increase the time window.

6. Use extra money to pay down your bills

While it’s tempting to spend any “extra” money on a vacation or a Taylor Swift concert, you can improve your finances by instead channeling that money into paying down your debt. Try taking a more modest vacation by traveling locally. Go to the beach or the mountains, and put the money you would have spent on airfare and hotels toward your student loans or credit card debts.

7. Put money in your savings account weekly

A savings account will come in handy if you have an emergency—such as losing your job, becoming injured or terminally ill, or getting into a car accident—which is something that happens to most people at least once in their life. You can grow your savings through a very simple process: just set up weekly automatic withdrawals from your checkings account into your savings account. Even if you just save $20 a week, that translates to $1,040 a year.

8. Save your money for large purchases

Rather than buy a car or other large purchase in the spur of the moment, save up your money for a while first. Not only will this help keep your debt minimal, it will help you ensure that you really want to spend that money. Plus, the alternative is taking out a loan or credit card, which will end up increasing the money you have to pay in the long run.

Saving up doesn’t mean saving all the money in advance—if you’re buying a house, for example, you likely won’t be able to pay the entire amount upfront. But saving up as much as you can beforehand means you have to borrow less, increasing your savings and reducing how much you’ll ultimately pay.

9. Reconsider your subscriptions

Magazine subscriptions, gym membership, and streaming services can add up. If subscriptions or memberships are cutting into your budget, you may want to reconsider which ones you actually need. Look at your bank statements or use a subscription tracking tool to see your subscriptions and cancel anything you’re not using. You may also be able to bundle some services for more savings.

10. Save up an emergency fund

An emergency fund should have the money you’ll need for three to six months’ worth of expenses. This will help you cover medical bills, car repairs, or other unexpected expenses that come your way. It should have enough funds to get you through three to six’ months without tapping into your current income, in case you suddenly lose your source of income.

11. Pay bills when they’re due

Late bills usually result in added fees, so paying bills on time is simply a way to save money. But it’s also a way to set good habits. If you always pay your bills on time, you won’t have to worry about interest and late fees, and the sooner you start paying your bills on time, the longer you’ll keep the habit. Set reminders or mark due dates on your calendar to make sure you pay all your bills on time.

12. Invest

If you have disposable income, investing it can be a great way to build wealth over time. One of the easiest and most effective ways to do this is by making contributions to your employer-sponsored retirement plan. Contribute the amount needed to trigger the maximum employer match so you can get the most from your plan. If you’re self-employed, set up a SEP plan, a solo 401)k), a SIMPLE IRA, or a Roth IRA.

If you’re investing in stocks, bonds, or other vehicles, make sure you understand the risk and choose a plan that matches your level of risk tolerance. It’s also a good idea to diversify, or invest in different types of accounts so your finances won’t crash if one stock plummets.

13. Work with a financial advisor

If you really want to create a solid financial plan for the future, working with an advisor is a great option. They can help you decide how to invest, how much to save, where to spend your money for the maximum benefit, and more. They can also help you achieve your financial goals.

14. Don’t forget taxes

Taxes come as a shock to many, even though we all know they’re coming in theory. Certain savings and investment plans will help minimize your taxes, and there are plenty of things you can do to offset the amount you owe. A tax and finance expert can help you maximize credits and deductions and minimize your taxes due. If you’re looking for a qualified tax expert, TaxGlobal can help. Simply use our platform to match with your ideal tax professional who specialize in your unique needs.