Here are ten tips to help you get the new year started off on the right financial foot.
LEAVE THE PAST BEHIND
Lamenting over your past financial mistakes isn’t going to change them or make them better. Starting off the year with a fresh mindset to come up with plans and goals.
START A BUDGET
Having a budget in place will help create a roadmap for other financial decisions. There are several different methods so you can find the one that best fits you so you have a better chance to succeed.
Depending on your financial goals, it may be helpful to have several different savings accounts for different things. For example, having a high-interest liquid account is a great option for an emergency savings while a Certificate of Deposit is good for longer term savings, such as a vacation.
SET UP AUTO PAYMENTS
Set up credit card and other bill payments to be paid automatically. Not only will this be one less thing you need to think about, but you no longer need to worry about late or missed payments affecting your credit score.
REQUEST CREDIT REPORT
A credit report is a good indicator of how your financial situation is if you aren’t completely sure. You’ll be able to see what debts you owe as well as what lines of credit have been opened in your name. If you notice any errors, report them as soon as possible.
MAKE DEBT ELIMINATION PLAN
Depending on the amount of debt you have, having a strategic plan in place to get this paid down may be the difference between actually getting them paid off or just making minimum payments and racking up tons of interest.
PLAN FOR FUTURE
If you haven’t in a while, take a look at your current retirement and insurance situations. Your future self will thank you for finding and take care of anything that needs to be changed or increased.
CREATE ESTATE PLAN
If you don’t already have one, make it a priority. Not having one in place may cause your estate to be subject to state laws affecting where your assets will go.
KNOWLEDGE IS POWER
Ignorance isn’t necessarily bliss when it comes to your finances. Utilizing resources that are available, such as podcasts, books, blogs, etc. can help arm you with the knowledge to make decisions with confidence when it comes to your finances.
BE MORE HANDS ON
If you’ve been complacent or tend to let your finances run on autopilot, make it a goal to be more hands on with your money. Set aside specific times to examine your finances and check up on your financial goals. Include your partner and/or family where it’s necessary/important.