It’s a brand-new year, which means it’s time for a new you! What better way to improve yourself for the new year by evaluating and improving your finances? 2020 was a very different year for many of us – and maybe your finances aren’t looking quite the way you’d expected. But now that you’re better prepared, let’s get your finances in tip-top shape this year!
To get you started, these are a few common financial new year resolutions people have and helpful tips on how to reach those goals this year!
If your goal this year is to start investing your money, you’ve made a very smart choice. Creating savings accounts and investing your money is a great way to reach long-term goals. Some examples include buying a house, saving for your child’s education, or putting money away for your retirement. Whatever your financial goal is, investing is a great way to get there. By working with a financial advisor like myself, I can show you what type of savings account would be best to open and how to start investing!
All of us are guilty of therapy shopping here and there – even before the pandemic. However, if you’re ready to cut down on how much you spend, start budgeting your expenses. One helpful way of doing this is to review your current monthly spending habits. Then, make a list of essential and non-essential expenses. This helps open your eyes to how much you really spend in a month. It also gives you a better idea of what to set as your spending budget. You’d be surprised by how quickly that daily Starbucks bill will add up in a month!
Pay off high-interest debt
Whether you’re still paying off those pesky school loans, you racked up quite a credit card bill with your holiday shopping, or just bought yourself a brand-new car, consider putting some of your holiday gift money towards paying off your debts. Start with the debt that has the highest interest rate and work your way down the list. The less debt you have, the less financial stress you’ll have too!
Find new sources of income
When it comes to budgeting and investing money, it’s a lot easier said than done for many people. At the end of each month, if you’re finding it difficult to keep money aside to save it or put it towards your debts, a great solution is to find a second source of income. Much easier said than done, I know. But even if it’s becoming an Uber driver during your time off or helping people in your community by helping shovel snow or dog walking, there are many side gigs you can take on to get yourself a little extra cash – and that money grows quickly!
Automate your savings
If you see extra money in your account at the end of each month, sometimes our impulse is to just spend it on ourselves – which there is nothing wrong with. But if your goal is to save money and you find it hard to do so, set up your account to automate your savings for you. When you automate your savings, the bank will automatically take a certain amount of money out of your account each month and put it towards your savings. Even if you start with a small amount like $20 a month, that’s $240 you’re putting away in a year.
Improve your credit score
If your goal is to get approved for a loan or a mortgage this year, one thing you may notice is your credit score might be sitting a little lower than you want it to be. Improve your credit score by making payments on time and keeping your credit card debt low or completely paid off. Once you start making regular payments on time, you will begin to see your credit score climb.
Are you ready to reach your financial goals this year? I can help with that. As a professional financial advisor, I can help you evaluate your finances. I can tell you which steps you need to take to get to where you want to go. Everyone’s financial situation is different. However, I can help you increase your wealth and improve your financial well-being in just a few simple steps. Get this new year started right by giving me a call today at (705) 315-0516 to set up a meeting and together we’ll have you knocking those goals off your to-do list faster than you might think!