Budgeting for your New Year's resolutions is important if you want to succeed, and Fast Auto Loans, Inc. can help if you need extra funds in an emergency with a registration loan. No matter the time of year, starting early is always an excellent idea, and this guide will help you do that.

The following sections will show you a step-by-step process to prioritize expenses to manage financial New Year’s resolutions. You’ll also discover how to prepare for emergencies and keep you on track!

 

How Do You Prioritize Expenses To Manage New Year’s Resolutions?

One of the most important things to do is to organize your finances if you want to achieve your New Year’s resolutions. Above all, you must prioritize your finances to ensure that your hard-earned money only goes towards things that contribute to your success.

Here is a 5-step process to prioritize expenses to manage your New Year’s resolutions:

Step 1: Specify Your New Year’s Resolutions

One of the biggest mistakes people make when setting New Year’s resolutions is not being crystal clear about what they want. So, your first step here is to specify your resolutions, especially any associated costs. Remember: there’s no such thing as being ‘too specific’, so calculate as much as you can down to the last cent.

Step 2: Create A Budget Around Those Resolutions

Next, you’ll want to create and maintain a budget around your New Year’s resolutions. You can do this with a pen and paper, though many people use spreadsheets and apps nowadays. The right choice for you is whichever method that’s easiest for you to stick with.

Step 3: Prioritize Essentials First

Planning your finances can be exciting, especially considering your New Year’s resolutions. However, the top priority must always be your essentials, not your goals.

Your essentials are the non-negotiables that you must pay every month to survive. They include your rent or mortgage, food, bills, and anything else you cannot function without. You must always ensure you can pay for these items first before you spend money on anything else, including your New Year’s resolutions.

Step 4: Identify What Is Or Isn’t Necessary

Once you’ve prioritized essentials in your budget, you can begin sorting your other expenses. Here, the goal is to split them into two categories: those that are necessary and those that you can live without.

For example, if your New Year’s resolution is to buy a house, then any related expenses are considered necessary. Meanwhile, things unrelated to your New Year’s resolution can go lower on your priority list.

A common example here is eating out, partying, or any entertainment-related expenses. Remember: you don’t have to get rid of those items entirely. Instead, you should cut down on them so you have more money for things related to your New Year’s resolution.

Step 5: Set Money Aside For Emergencies

Here’s the trickiest bit to prioritize in your budget: money for emergencies. The challenge here is that a financial emergency may or may not happen.

Plus, you’ll never be able to predict how much that emergency might cost. Still, a financial emergency could wipe you out entirely if you’re unprepared.

So where’s what you can do:

• Firstly, prioritize setting aside a small amount of monthly money towards an emergency fund. The small amount won’t bother your other priorities, and it’ll build towards a big emergency fund as time passes.
• Secondly, have a way to borrow additional funds if you need them in an emergency. For example, you can get a title or registration loan if you have a car.

Remember: you must have a strong understanding of your emergency finance options beforehand. That way, you’ll know which one to pick in an emergency.

A title loan, for instance, uses your lien-free title as collateral. That could give you access to $15,000 in emergency cash, depending on how much your car is worth.

You don’t have to surrender your vehicle to get this loan. However, you must be the car’s full owner without any outstanding loans or judgments against it. That’s how you qualify for a title loan.

Alternatively, a registration loan only requires an Arizona Motor Vehicle Registration and other documents. You don’t need to own your vehicle outright to get this type of loan, which can quickly give you up to $900. Understanding these differences will help you make better-informed decisions when borrowing money to supplement your emergency fund.

 

Take The First Step Now!

Hit the ground running by starting on your New Years resolutions now! Follow the steps described above to build a budget that prioritizes your goals while still preparing you for possible emergencies.

Remember that you can turn to Fast Auto Loans, Inc. whenever you need a title or registration loan to help you overcome a financial hurdle. Just fill out the easy online form anytime, and a friendly representative will call you soon to discuss the rest!

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.