Well 2014 is almost over and what a fun year it has been! In less than 15 hours it will officially be 2015! Since the new year is all about making goals, have you thought about what your New Year’s resolution will be? If not, why not make it a goal to be financially savvy? Here are 3 ways to kick off your new year the right way:
52 Week Money Challenge. Remember the video I made about this challenge last year? No… well check it out! This is a tough one, but if you are dedicated you’ll have a nice chunk of money around this time next year. If you tried and failed last year… try it again! It never hurts to save money!
Start Saving Now! So, you know how I tend to emphasize the importance of saving money
and having an emergency fund? Well, that’s because it is extremely important! You never know when an emergency can come about. Financial emergencies can come in the form of a job loss, large medical expenses, home or auto repairs or something you’ve never even dreamed of. The last thing you want to do is be forced to rely on credit cards or a loan which could simply increase the problem. Most experts agree that you should keep three to six months worth of your income set aside in your emergency fund. The most common reason for the need of an emergency fund is due to a sudden loss of income.
Where should you start?
If you feel it is hard to begin saving, simply start with a small amount. Each month put aside $20-$30 and as you learn to budget and eventually make more money, you can increase that dollar amount. To help you stay on track, set up an automatic transfer at your Credit Union. Each month you can automatically transfer a certain amount from your checking to your savings account for no fee at all!
Manage your Debt. Whether you borrowed to pay for college or to enhance your lifestyle, it is difficult to feel financially savvy if you are drowning in debt. Make a plan of action! Start by paying off debts with the highest interest rate first (ex. credit cards). Also, try paying more than the minimum payment. You will be able to pay your loan off faster and the overall interest amount will decrease saving you a good amount of money!
If none of these helped you out, I’m confident you will be able to make good decisions on your own! I wish you all a happy and successful New Year! Good luck and I will see you in 2015!
Until Next Time,