Many people view a new year as a chance for a fresh start. It\u2019s a great time to evaluate your financial health and set some goals for improvement. When you make resolutions, it\u2019s important to set realistic, achievable goals so that you don\u2019t get discouraged. Here are some ideas to get you started.<\/p>\n
Budgeting, or analyzing spending habits, is the best thing you can do for your finances. When you see how much money is spent on mandatory expenses, such as mortgage or rent, utilities, groceries, or loans, versus non-essential expenses, such as dining out, parties, gifts or vacations, you may find a way to reorganize expenses to make spending cuts, begin saving and start to pay off debt.<\/p>\n
Once you\u2019ve determined how much you spend on the necessities, compare what\u2019s left over to your monthly income. Avoid setting budgets that are unrealistic.\u00a0 You want to establish a budget that you will stick to and be able to feel success.<\/p>\n
The amount of savings<\/a> you have ultimately depends on your financial situation, but most experts say you should have enough to cover six to nine months of living expenses. Unless you already have a substantial amount saved, it isn\u2019t realistic to make this your goal for the year. Instead, work on small progress over time. Refer back to your budget and determine how much you can save each month. Ideally, you should save at least 10% every month. By the end of the year, you\u2019ll be well on your way to a healthy savings account.<\/p>\n You already know that the sooner you can pay off your debt<\/a>, the better. You\u2019ll end up paying less overall by avoiding extra interest accrual.<\/p>\n If you\u2019re able to, set a goal to aggressively pay down your debt this year. Pay more than the minimum amount due to see progress more quickly. Try to trim extra expenses from other budget categories so you can prioritize your debt.<\/p>\n If you\u2019ve struggled with timely bill payments in the past, make it your goal this year to always pay on time. Set up automatic payments if you can, or create recurring reminders on your calendar or in your phone. You\u2019ll save money because you won\u2019t be hit with late payment fees, and your credit will improve.<\/p>\n The best way to know where you stand financially is to regularly check your credit report<\/a>. You\u2019re entitled to one free credit report from each of the three credit reporting bureaus every 12 months. Your report has information about your current credit account standing and payment history. It also includes any negative occurrences, like car repossessions or accounts in default. Check your report regularly to make sure the information is accurate and up to date.<\/p>\n If your credit score<\/a> is on the lower end, set a goal to improve it this year. Pay any overdue bill payments, and make sure you make all payments on time moving forward. Keep credit usage below 30% of your available credit. This means you shouldn\u2019t spend more than $300 on a card with a limit of $1,000.<\/p>\n Keep in mind that if you apply for new credit this year, whether it\u2019s an auto loan or a credit card, the lender will most likely perform a hard inquiry<\/a>, which could lower your score.<\/p>\n Are there certain aspects of your finances that you struggle to understand? Take the time this year to learn more. Whether you want to do research into different ways to invest your money, or you want to have a better understanding of how interest accrues on your loans, having a solid understanding paves the way for healthier financial well being.<\/p>\n Flitter Milz is a consumer protection law firm that represents victims with credit reporting problems, those that have received contact from abusive debt collectors, and have had vehicles wrongfully repossessed.\u00a0 Contact us<\/a> for a free consultation to determine whether your consumer rights have been violated.<\/p>\n","protected":false},"excerpt":{"rendered":" Many people view a new year as a chance for a fresh start. It\u2019s a great time to evaluate your financial health and set some goals for improvement. When you make resolutions, it\u2019s important to set realistic, achievable goals so that you don\u2019t get discouraged. Here are some ideas to get you started. Create a … <\/p>\nPay down your debt<\/h2>\n
Pay on time<\/h2>\n
Check your credit regularly<\/h2>\n
Improve your credit score<\/h2>\n
Become more financially literate<\/h2>\n
Seek Legal Help<\/h3>\n