January 4, 2021
After a year like 2020, we all could use a fresh start. If you’re looking to stabilize or improve your financial situation this year, here are some of our top tips to start you on the path toward financial wellness.
Create a Budget – And Stick to It
It’s a tip you’ve heard before. But every path toward financial wellness starts with having an accurate picture of your finances, and the best way to accomplish that is with a budget. A budget helps you identify which spending areas can be modified to suit your financial needs, and gives you the tools to stay disciplined – a key component of keeping a New Year’s resolution!
Pay Down High Interest Debt
High interest debt, which tends to be credit card debt or student loans, can make you feel stuck in a financial rut. If you are not paying all the interest, you may be charged interest on interest and not even making a dent in the principal (the amount of money you owe in the first place). If you budget to pay more on your loans, you may be able to pay off your loans sooner. That may mean making some sacrifices in the short term. But getting out from under a pile of debt is liberating; you’ll feel free to pursue your financial goals!
Once the bills and everyday necessities are taken care of, you should be making a plan to save. Whether you include it as part of your budget or take advantage of programs like Simple Change to put away cash automatically every time you make a purchase, saving is a vital financial habit that will serve you well down the road. After all, have you ever heard someone say they regret saving so much money?