It is that time of year again: the time to welcome in the New Year. This is the perfect moment to make a New Year’s resolution for things you would like to do better next year. Making a resolution is something that many people dread because they’re afraid they will fall short. Improving finances tends to be high on the list of New Year’s resolutions. Often people struggle to keep their resolutions, but here are few ideas to help attain success in small steps:
Create a financial plan: This is the foundation upon which all of your plans will rest. It helps you to be conscious of your spending and helps you make choices whether you should make a purchase or not.
Budget: Develop a budget that will actually work for you based off your needs, not wants. Don’t go cold turkey and cut off all spending habits. It can tend to backfire. Reduce spending in certain areas that are not critical to your life at the moment.
Get your credit in check: Look up your credit history and try to pinpoint where you went wrong whether it is late payments, errors, or collections. Sign up for a self-monitoring service that will allow you to actively monitor your credit score.
Develop a plan to fix your credit score: If your credit score isn’t where you want it to be, create a plan to get it to where it needs to be. Decide which debts are critical to pay off immediately. Begin changing how you use your credit cards to decrease the accumulation of debt on your accounts.
Enjoy the New Year: Don’t cut everything out of your life in order to save money. While it is great to be conscious of your spending and to save money, don’t keep yourself from the small joys in life. Look at your savings and budgets to see where you’re able to splurge. If you’re able to put away money for a family vacation, go ahead. It’s what you’ve budgeted for. If you’re able to comfortably afford the daily cup of coffee, go for it. However, if your bank accounts do not have room for you to make these types of splurges, it might not be the best choice. Find that middle ground where you can still enjoy the new year while saving and budgeting your money.
Contact me today to schedule an appointment to help weigh all of your options to come to the best decision for your financial future in 2017.