Just like the common vow to commit to exercise and dieting as a New Year’s resolution, it’s also a good idea to take stock of your financial situation and include some fiscal goals. Taking a good look into your overall savings plan, wasteful spending, and debt can help you get your financial health in tip-top shape and increase your prosperity.
Here’s a list of five valuable exercises you can do to make sure you’re closer to where you want to be financially by this time next year.
1. Cut wasteful spending.
This may seem like an obvious choice but for many, it can be a hard one! Creating a budget and sticking to it can help you limit unnecessary spending. Apps like Goodbudget, Mint, and Clarity Money can help.
2. Create a cushion in your savings.
After you establish your budget, save more for emergency expenses by using automatic transfers or savings platforms. These transfers make saving easy because you don’t have to think about it.
3. Get a handle on credit card debt.
If you have multiple credit cards, you may want to consolidate to one or two cards. Start by transferring your multiple balances to the credit card with the lowest interest rate. Then, challenge yourself to lower these balances by spending only cash on everything you purchase for an entire month and see how it affects your spending habits.
4. Improve your credit rating.
Whether you’re looking to buy a new home, rental property, car, or solar panels, your credit score matters because borrowers with low credit scores can face higher interest rates. This year, make it a priority to research your credit report, make sure everything is accurate, and then take the necessary action to improve it.
5. Protect your estate.
If you don’t have an estate plan, now’s the time to create one. If you already have one, now may be the time to make sure it’s up to date. Life changes can alter your estate wishes and should be addressed as they happen to ensure that you’re always prepared.
Make financial wellness a resolution this year with these five tips. Give the office a call if you'd like to discuss any of these financial exercises.
Happy New Year!
Third parties mentioned herein are provided for informational purposes only and do not reflect a recommendation or endorsement by the broker-dealer or its representatives.