If improving your finances is one of your New Year’s resolutions, we’re here to help. There are plenty of things you can do to be more financially fit.
Create a Budget
If you read up on personal finance advice frequently, this shouldn’t be new. Having a budget, and ultimately understanding how much money you have coming in and going out, is the easiest way to get a handle on your finances.
So how do you get started?
- Look at your transactions for the past couple months and determine what is your normal income and expenses.
- Use that information to estimate how much money you’ll be spending each month. Overestimate to ensure you have a cushion.
- If possible, set aside time WEEKLY to review your budget and where you are that month.
One you’re comfortable with what’s coming in and what’s going out, you can start to allocate money to savings, debt payoff, your emergency fund, etc.
Pay Yourself First
This is another common tip you’ll see, because it makes sense. The idea is before you spend any of your paycheck, you put aside some of the money into your savings. What you don’t see, you can’t miss. You can probably have this set up to occur automatically with your payroll.
Understand Your Debt
You know you have debt, but do you know how much? What your interest rates are? How long until you’ll be paid off?
Research every single debt you have and make sure you know the details. This will make it easier to decide which debt to tackle first.
Become More Financially Literate
If you’re reading this article, there’s a good chance you’re already on a quest to become more financially literate. Keep reading our blog and exploring other resources to learn more!
Save on Food and Clothing
Food and clothing are necessities that tend to be budget killers, but they don’t have to be. For food, try shopping at discount grocery stores (Aldi is a good one), plan out your meals each week, and always shop with a grocery list.
For clothing, your local consignment shop is a good place to check out. They usually have new or nearly new clothing (typically popular name brands) for very cheap.
Do You Have Money Tips to Share?
If you’ve found a trick that works well, please share in the comments!