With the new year, you want to make sure that all of your finances are in order. After all, you never know when you want to make that major home or car purchase. Here are some steps that can help you enjoy life without having to worry about your money.
1). Set up a budget
The first thing that you will want to do is set up a budget. By setting up a budget, you will be able to determine how much money you have to spend and how much money needs to be allocated to your bills and other expenses. The good news is that there are a number of free apps that can help you set your budget.
Here are some of the top personal finance apps that can help you get started today:
● Simplifi by Quicken
2). Create automated monthly payments
You don’t want to miss a payment. After all, missed payments can lead to costly late fees and dings on your credit score. You can make sure that you never miss any bill by setting up an automated payment plan with your bank. Just about all financial institutions allow for automatic payments. Be sure to get all your monthly bills on an automated payment never worry about missing a bill again.
3). Set a savings goal
Did you know that 59% of Americans don’t have $1,000 in emergency cash? This could be a problem if you ever need to get your vehicle fixed or if your home has plumbing issues. Start by saving a small percentage of your money each month. You can invest this money or simply keep in the bank in case you have an emergency.
4). Curb impulse buying
One of the biggest drains in any person’s budget is spending money on stuff that you don’t need. Unfortunately, there are lots of stores and online companies that are really good at making people buy stuff on impulse. Here are some steps that you can take to curb any impulse buying:
● Leave your credit card at home.
● Never go shopping when you are emotional.
● Try not to compare your lifestyle to others.
5). Pay down high interest debt
One of the biggest wastes of money is having to pay high interest rates on your outstanding loans. For instance, if you have $800 of debt on a credit card that charge 28% interest, then your monthly interest payment alone will be $20. That’s $240 of interest payments a year. Be sure to pay down your high interest rate debts first. This will go a long way to getting your budget under control. Getting financially fit in 2021 With your financial house in order, you’ll be able to enjoy more from life without money worries. Be sure to set a budget, curb impulse spending and get rid of that high interest rate debt. Before you know it, your money situation will look better than ever in 2021.