4 Financial Resolutions for Your Future
It’s never too early or too late to start thinking about your financial resolutions for the future. When it comes to personal finances, it’s those who think ahead who end up struggling less with debt. With that in mind, here are some financial resolutions that you should be focusing on as you move towards a more financially stable future.
Save by Paying Down Your Debt
Ending up in debt is something that many people go through at some point in their lives, and they tend to feel overwhelmed and helpless about it. But this isn’t something that should cause one’s world to stand still because this is a problem that can be solved! It will probably take some time to pay the debt off, but there are some tips and tricks out there for paying it off the smartest way possible.
If you find yourself in debt you could start off by focusing on paying down your debt with the highest interest rates, which is known as the “avalanche method”. This will help you to save money from high interest rates overtime, but it isn’t always a feasible place to start if you don’t have enough money saved up.
The “snowball method” is one that almost anyone can start with by paying off several of their smallest debts. There’s a reason why the experts call it the "debt snowball" method. Once you gain momentum in paying off debt, you can move from one success to another as you reduce the total amount of money that you owe. You don’t save as much money in the long run as you do with the avalanche method, but it’s better to start somewhere than let your debt continue to build up.
Budget Your Money
Spending according to a plan is the best way to avoid overspending. Of course, there are some emergency expenses that are completely unpredictable. Outside of that, you should have a monthly budget and track your spending as it happens. Take advantage of technology in the form of a budgeting app to help set your goals and stick to them.
Start with the largest fixed expenses that you have, including your housing and car payments. Where budgeting really helps you is on the luxury items that include things like eating out and entertainment. Your fixed expenses are what they are, and there is little that you can do about them. You can curb unnecessary spending in other areas or at least set limits on it.
Monitor Your Credit Score
In many ways, your credit score defines you no matter how unfair it may seem. Creditors look at you as a number, and they are not interested in what caused you to have poor credit. As difficult as it may seem, you need to play their game and bring up your score.
Credit repair does not necessarily happen in a day. Instead, it comes as a result of years of doing the little things necessary to improve your finances. The two biggest things that you can do to improve your credit score are to pay your bills on time and reduce your debt. These are the two biggest pieces of the credit score puzzle. Getting better credit will allow you to borrow money on better terms when you need it. When you adopt healthy habits, the credit score will take care of itself.
Haven’t checked your credit score lately? If you have a Check `n Go loan then you have free access to the TransUnion CreditView™ Dashboard through your Pocket360 account! Not sure how to access it? Simply log into Pocket360™, find the Benefits & Rewards Section for access to the dashboard, and set-up your TransUnion account to check your vantage score for free.
Educate Yourself About Personal Finance
When it comes to personal finance, you can never know too much. Financial literacy is the key to both saving and getting out of debt. Take the time to learn about different products and strategies and how they can help you. Learn about the long-term impacts that your spending decisions today could have on your future. Personal finance is all one large, interconnected puzzle.
Education comes from reading and studying. You can research personal finance by buying a book or even following some trusted sources online. These books can be on saving or investing, and they could help you with a financial plan on your own. Many people end up making mistakes and in debt because they do not know a better way. Don't let that be you.
Better financial health is about goals and planning. It’s never a bad thing to have aspirations. You can approach each new year in a constructive and proactive manner to get yourself on the road to being debt-free and financially secure.