Beginning the New Year fresh can feel like an exhilarating fresh start, especially for those that might feel overwhelmed by their financial past. While many might find reaching their financial goals daunting, rest assured that there are small steps you can take to achieve your resolutions.
Here are five financial resolutions to adopt in the New Year:
1) Cut back on one unnecessary spending habit
Maybe it’s the gourmet coffee with coworkers or late night cocktails with the girls; whatever it is, it might be cutting a chunk out of your budget that could be put to better use. Consider coffee from the pot or staying in to catch up with friends to help curb your casual expenditures.
2) Establish auto-pay for recurring bills.
Most personal banks offer automatic bill pay, making it easier than ever to pay bills online. Set up as many accounts as you can to avoid expensive late fees from unpaid bills. The later you are on your payments, the worse it can be for your credit score.
3) Resolve to Review Your Credit report
Reviewing the information in your credit report can help you understand how you handle your personal finances, balance your credit usage and handle your payments. It can also see what area might help you reach your bigger goals – like buying a house or financing a new car.
4) Start an Emergency Fund
Stashing away for a rainy day is one of the best ways to avoid unnecessary debt. Most of us have all had to deal with an unexpected auto repair or and expensive medical expense, but relying on credit cards to get you through tight financial times can be risky. Instead, put away enough to keep you covered through unforeseen circumstances and feel confident you will have enough saved should the worse occur.
5) Pay Down One High Interest Line of Credit
High interest credit cards or loans can quickly cut into a personal budget. Consider choosing the line of credit your pay the highest interest toward and make it a goal to pay it off by the end of the year. You might be surprised at the money you can save with one less line of credit to worry about.
This article is provided for general guidance and information. It is not intended as, nor should it be construed to be, legal, financial or other professional advice. Please consult with your attorney or financial advisor to discuss any legal or financial issues involved with credit decisions.
Published by permission from ConsumerInfo.com, Inc. © 2013 ConsumerInfo.com, Inc. All rights reserved.