The Best New Year Financial Tips To Try This Year
Today, we’re covering the best New Year financial tips you need to get on target with your finances. There’s no time like the beginning of the year to be clear on your resolutions, make healthy habit changes, and know where you’re heading.
Our tips go over:
- Knowing your money habits inside and out
- Setting clear goals
- Using money for your well-being
- Working on your credit score
- How to save hundreds on bills
- And other topics to help
These New Year financial tips are sure to increase your savings, lower your expenses, and let you feel more in control of your finances this month and beyond.
Financial Tips To Try This Year
1. Know Where Your Money Is Going
The first step of these New Year financial tips is to see where your money is going. To do so, you can create a spreadsheet to look at past statements and record each transaction to get a better idea of what you’ve spent in the past. You can also try a free tool to do it for you, like the Mint app.
The point is to see how much you’ve spent on necessities, food, travel, bills, entertainment, etc. Once you know how much you are spending daily, weekly, or monthly, it will be easier to create a budget and determine which spending habits you can improve.
2. Set Clear Goals
Some common financial goals are to set up an emergency fund, pay off debt, or save for a vacation. Determining your goals will give you something to work towards and help you form your budget.
For example, if your goal is to visit your dream vacation destination, you will first need to determine how much money you need to make the trip.
Then, you can take a look at your budget and decide where to cut down – like on eating out or spontaneous spending – and see how much you can save per week.
After this, you’ll know how long it will take to save up for your vacation and can work towards a clear goal.
3. Prioritize Your Well-Being
Health is wealth and without it, money loses value. You should prioritize your well-being so that you can enjoy your money. If you are paying for something that isn’t helping your health, mind, or career, cut it out.
Use that extra money on things that serve you instead, such as a yoga class or leadership workshop, or save it for a rainy day.
4. Know And Increase Your Credit Score
It’s important to know your credit score so you can ensure you have a good enough score if you need to borrow money for a home or car. Agencies that report credit scores are Equifax, Experian, and TransUnion. You should look up all three reports on their websites. You have access to one free credit history report from each per year.
There are many ways to increase your credit score. One easy way is to put a small bill on your credit card like a streaming subscription if you have included that in your budget, and set up automatic monthly payments to never miss a billing cycle. This can boost your score without you having to do anything. Having older accounts, paying on time, and lowering your debt-to-income ratio can also help.
5. Reassess Subscriptions, Insurance Plans, And Utilities
Some people have so many subscriptions, they don’t even know what they are paying for. Check your bank and credit card statements to make sure you aren’t paying for something you aren’t using. Cancel any subscriptions you don’t use or that don’t serve you.
It’s also a good idea to shop around when it comes to insurance plans and utilities. You could save hundreds of dollars by switching or even get a better deal with your current provider just by putting aside the time to inquire.
6. Start An Emergency Fund
Emergency funds are extremely important to have and having one should be one of your immediate financial goals. Not only is it one of our New Year financial tips, but it’s a general piece of advice for any time of the year.
An emergency fund should have three to six months’ worth of living expenses to cover you in case an emergency occurs such as a health scare, natural disaster, or if you lose your job.
How To Face An Emergency Without A Fund
If you find yourself facing an emergency without a fund in place, you may be able to use an installment loan from Idaho Title Loans, Inc. in the meantime. These loans are short-term financial solutions for up to $1,500 that are paid back in installments over time.
Almost anyone can qualify for our installment loan, you just need your state I.D., a bank account, and proof of income to apply. Fill out the inquiry form on our homepage to get started and connect with one of our representatives today.
Set Yourself Up For A Financially Healthy New Year
If you’re ready to amp up for the New Year when it comes to your finances, it all starts with a basic budget and knowing your spending habits inside and out. Once you can be honest with what you have and where your spending, you can better decide where you want to go and figure out what needs to be done to make up the difference.
Our New Year financial tips will help you set yourself up for an improved year of finances, but they may not be enough to get you through a recent financial emergency. So, if you need some extra cash fast to pay off an urgent bill, you can turn to an installment loan from Idaho Title Loans, Inc. Reach out to learn more and get back on your feet today.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.