It’s a new year – a great time to think about your personal finances. Think new year, new you, a renewed focus on finances!
It’s important to review where you stand with your money, set goals, and develop a plan for financial stability during these uncertain times. Here are 6 tips for establishing some good money habits for the new year:
- Set financial goals.
Write out specific things you want to achieve, such as purchasing a new vehicle, or setting aside money for your child’s college tuition. Determine where you want to be at year’s end. Then create a plan and review it monthly.
For more information, check out our blog Get Money Smart for Peace of Mind, and learn 5 Tips to Improve your Financial Wellbeing.
- Budget, budget, budget.
Review your spending and look for ways to cut back. Look at how much you spend eating out at restaurants or going to the movies. Review your subscriptions such as cable TV.
Want to know more about budgeting? Check out our blog: 5 Steps to Creating a Budget
- Tackle your debt.
Review your debt so you know exactly what you owe. Determine a strategy for paying off your debt, whether it’s paying off your highest-interest debt first or paying off your smallest loans.
- Review your credit report.
Look through your credit reports to make sure your information is correct. The beginning of a new year is a great time to check out your credit reports.
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- Start saving.
Even if it’s a little bit, save. Put some money away for unexpected emergencies that may occur. Make savings a part of your monthly routine.
There’s a rule of thumb that says you should save a least three months’ worth of expenses for an emergency.
This will help you in the event of a job loss or other unforeseen emergency.
Our blog, Easy Ways to Save Money Now, offers 12 money-saving tips to help you through these challenging times.
- Review all insurance coverage.
Look at auto, home, and rent, and make sure you have enough coverage, but you’re not overpaying. Things change over time, such as a new driver in the family, home improvements, so it’s important to review your current coverage.
Follow these tips to help you wake up every day knowing you are successfully managing your money and controlling your financial situation. Money doesn’t buy happiness but getting your financial house in order can contribute to your overall sense of wellbeing, and that’s just a great way to start the new year.
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