The end of the year is here and it is time to start working on your goals and financial budget for the New Year.

Whatever type of profession you have, it is important to set goals for yourself both financially and personally.

Here are some tips we would like to share to set your goals and start off your New Year right:

• Analyze your spending for 2013. Have you managed your budget through 2013? If so your expenses should be readily available.
• Set up your expenses by categories. The first category should be fixed expenses such as mortgage or rent, vehicle payments, credit card payments and household expenses like your electricity and HOA dues.
• The next category is controllable expenses. This includes eating out, coffee at Starbucks, entertainment, manicures, etc. These are all things that are not mandatory and necessary.
• Once your categories are lined up, add them up for each month and then for the entire year. When you add them up, you will most likely see spending patterns along with areas you can improve on. Set your goals to improve on those areas.

Plan your savings goals for 2014. If you didn’t save as much as you would have liked in 2013, make a commitment to save more this year.

• Set up an emergency savings fund. We recommend at least 3 months’ worth of your salary be set aside in case of an emergency such as a job layoff, health issues, or other traumatic event.
• If you just have one savings account set up that you use periodically, set your goals to set up a separate one just for emergencies.
• From your expenses list, see where you can cut corners and instead of using your money towards coffees or lunches out, use that money to put into your savings account.
• When you prepare your new budget, consider setting goals to add more money not only into an emergency fund, but saving for retirement, children’s college, or a dream vacation.