Can you believe it, we are entering our 2nd week of the new year? It's time to reflect on life goals for this year. Many people will make resolutions about health, fitness, love, and relationships. But what about finances? I think we all need a little help with our money in order to reach our other life goals!
Here are a few ways to get the most out of your money for the New Year:
Don’t spend more than you earn
This number one rule of personal finance, if you don’t have cash, don’t charge it. Strive to use cash for small purchases & use credit cards sparingly for bigger ticket items. After paying your bills and putting money into your savings, make a discretionary budget (and stick to it!).
Create an action plan
If you’re trying to eliminate student loan debt or, say, buy a house, break your big goal down into smaller steps. Otherwise, you may get overwhelmed by the larger task and give up.
For example, rather than saying, “I’m going to pay off $50K in student loans this year!”, focus instead on eating at home more often, taking one less vacation, or picking up a part-time job—anything that will free up cash to help you meet your goal.
Smash debt with the snowball-payment method
Start by identifying your most expensive credit card balance. Pay the minimum on your other cards, and roll the extra money into your payment for the expensive card. Once it’s paid off, focus on the next most expensive card, etc. You’ll save money by paying less in interest over time, and move yourself closer to being completely debt-free.
Use SMART goals to reach your money goals
S-Specific (ex. Save $125.00 a month to pay off car balance in 6 months)
M- Measureable (ex. monitor bank statements for monthly balance decrease)
A- Attainable (ex. based on my income I can pay off my car in 6 months while staying current with other bills)
R- Realistic (ex. saving $125.00 each month will pay off my car in 6 months)
T- Timely (ex. I will not have a car note in 6 months)
Seek professional financial counseling - visit www.skillz4life2020.com or call (757) 774-6953 for your free initial 30 minute consultation. Personal financial classes with virtual options available.
Disclaimer: All the information in this blog is published in good faith and for general information purpose only. It does not make any guarantees about the completeness, reliability and accuracy of this information. Any action you take upon the information you find in this blog is strictly at your own risk.