It’s finally a new year! 2020 was undoubtedly a different/challenging year for many, with the coronavirus pandemic impacting many people in different ways. The new year is an excellent opportunity to get your personal finances into shape and take a look at your money management goals.
We’re here to help you reach those goals, whether they are to spend less, create an emergency savings fund, or something else. With the following five tips, this will be one resolution that’s easy to keep.
If your personal finances aren’t in the best of shape, don’t panic. Use our money management tips to strengthen them now and throughout the year. Your finances will be in tip-top shape before you know it!
Get a Clear Picture of Personal Finances
Look at your personal finances right now! Review your credit card balances, mortgage or rent, budgets, investments, car payment, and more, and see where you can make improvements. For example, perhaps you could refinance your auto loan. Or maybe you could transfer a credit card balance. Any changes you make now can pay off throughout the new year.
Save More Money
One way to save more money is to split your paycheck into different savings accounts. You could also open specific accounts such as a Holiday Club and Travel Club so that you can save for the holidays and the trip you’ve always wanted to take. Plus, our Dare 2 Compare account review can show you how much money you can save. It only takes five minutes, and one of our friendly teammates will get in touch with you to schedule a face-to-face meeting.
Learn Your Credit Score & Improve It
Do you know your credit score? If not, the new year is a great time to learn it. Credit scores range from 300 to 850. Those with a credit score between 720 and 850 usually get the lowest interest rates or best credit cards. No matter what your credit score number, you can improve it today by paying off debt, paying more than the minimum balance, consolidating credit cards, and more.
Review Your Expenses
When’s the last time you checked your expenses or created a budget? From a money management perspective, you want to keep these to a minimum. Why? Because the less you spend, the more you’ll have in your savings account, which will come in handy for when you want to buy a home. To determine what to cut, consider if you need that fancy cup of coffee every day, all those cable stations, etc. Once you increase your savings, you can slowly add things back.
Ensure You Have an Emergency Fund
Good money management includes having an emergency fund with at least six months of living expenses. Of course, the more you have, the better. You can keep your emergency savings in a savings account or money market fund. If you don’t have an emergency fund, start one today!
Take Control of Your Finances in the New Year
There’s no time like the new year to reevaluate your money management habits so that you can improve your personal finances during the year, and of course, for years to come. If you need help with your financial planning, remember you can schedule an appointment with one of our friendly FFCCU teammates to see how they can save your money.
Take our Dare 2 Compare challenge and transform your money management habits today!
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