It's a new year, which means it’s time to start with a clean slate. Time to start working those finances. For many finances can be scary. Not knowing where to start, how to begin or even what to look out for. But that’s OK. We’ll get you through it...step-by-step.

Time to set yourself some goals. By July of this year make sure to know:

• Your net worth
• Your salary growth
• Your preferred budgeting method
• How to grow your wealth

But first things first. Understanding the basics of your cash flow. What exactly comes in, what goes out and how can you grow it.

1# Understanding your paycheck

Make sure you understand every detail that is listed on your paycheck and where your money is going. You’ve worked hard and it is only logical that you would know which part of your salary is going where. I am always astound by people who know exactly what ingredients they need in their facial cream for a great complexion, but have no clue how their salary is divided. I mean facial cream is important too, but really?

2# Automatic transfers to your savings Account

The easiest way of saving, is not thinking about it. So each month automatically transfer some money from your paycheck to your savings account. And then don’t touch it. Try to find a savings account with great interest rates so your money will grow a little without you having to work for it.

3# Get out of debt

So you have money in the bank, you have a savings account with a great interest rate and you have debt? Are you financially stable? Not really! You are working against yourself. Always pay off your debt, because whether you realize or not you also pay interest on your debt, this means you are paying back more than what you ‘borrowed’. So get rid of debt as soon as possible. Sometimes it helps to call the company where you have the loan and see if you can change renegotiate the interest rates or if there are any incentives if you pay off your debt quicker.

4# Then Pay Those bills

After you’ve saved a little and paid off a little of debt, you will know exactly how much you have left to spend. Because you put your savings and debt first there is less to spend, so be mindful in what you spend your money on. It is always smart to invest in some statement pieces and work gear, but don’t overdo it. Can you really only find organic vegetables at that pricey supermarket or is there also a farmers market that you can visit. Do you really watch all those tv channels that you are paying for, or can you save a little by bundling internet, tv and phone.

5# Invest in investing

Let your money make money for you, invest some funds into your investments, this doesn't have to be a large amount but be sure to know where and how to invest. And only invest in something that feels right to you, go for the long run, to avoid extremely high risks and educate yourself on your investments. Our article Investing like a boss can be a good starting point.

And for the rest of the money? Spend spend spend, because you have already dedicated a large part to your (future) self, you are free to spend/save/invest the rest however you like.