Getting yourself into financial shape

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(WAGM) - One of the most common New Year's resolutions is for people to get their financial lives in order.

Image Source: MGN

Bills from the holidays begin to show up shortly after New Year's, too.

Financial advisors believe the best way to get those finances set is to create and stick to a budget. In order to do so, it's important to take an honest look at your finances.

"I think the first thing is really understanding your expenses," said Scott Violette, a financial advisor for Barresi Financial. "Most people generally don't track their expenses all that closely. It's hard to budget if you don't know what's going out. We tend to know what's coming in a lot better but not what's going out.

"It might take a year setting up an excel spreadsheet or just using pen and paper, just writing down every dollar that you spend in that month. There are a ton of apps and those kind of things out there that can do that for you. You can connect them to your bank account or connect them to your credit card but I think the first step is to have an idea what you spend."

Violette's advice is that it's important to start tracking the big expenses and adjust your budget moving forward.

The last piece of advice is to create an emergency fund for unpredictable and unexpected life events.