New Year, New Financial Resolutions
January 2, 2018
Take control this year and put your mind at ease knowing you are on top of your finances. Below is a list of amazing ideas to transition into some smart-move financial resolutions. If you ever need help getting your finances on track, call one of our experts at Sterling State Bank. We are here to help!
According to CNBC, less than 40% of Americans have an emergency fund of $1,000. Coming up with that cash fast when something happens can be stressful and break the bank. Take a look at your finances in 2019 and analyze if you can put away $84 a month. If you are worried you will spend it on “non-emergency” items, try putting it into a savings account. By the time December rolls around you’ll have your $1,000 emergency fund ready for the next year.
Sell $250 worth of clutter
Turn your unwanted junk, clutter, and stuff into cash. Clear out some unwanted space and put it towards building your savings. Donating is great too and things you know you can’t sell you should donate to your local needs businesses. But when it comes to your financial security and having an emergency fund available and ready – making that a priority is key.
Challenge your shopping habits with a 2-week shopping ban
Step 1. Pick your dates. Step 2. Write your no spend dates down. Step 3. Commit yourself to not spending a single dollar more than you have to.
Really want to go out with your friends? Ask for a night in with games and movies. Itching to look at the latest deals? Don’t do it. Ask yourself – is this a priority? Will it really hurt my lifestyle if I wait an extra two weeks to get this? Is this the last sale this business will ever have? If you answered ‘no’ to one of the above, it can wait. At the end of your two weeks, analyze your consumption habits and how much you saved.
Make one extra payment
Over the course of the year make one extra payment to one bill. Your mortgage, car payment, or student loan. Doing this several times will reduce the life of your payments and less interest will accrue. Spread it out over the course of the year or plan on using a chunk from an expected windfall – taxes, a bonus check, etc.
Make a budget
You tell yourself you are going to do it every year and somehow it slips away. Make 2019 your year! If you don’t think writing down the days your bills come out in correlation with your bi-weekly paycheck is helpful, try a different approach. For example, calculate how much you need to make a month to pay your monthly bills. Write down what you will do with the extra savings and stick to it. Do what works best for you – just have a plan written down!
For those that want to pay off debt and don't know where to start – take the next step to prioritize your personal debt. Pay off your debts in order of smallest to largest, gaining momentum as each balance is paid off. When the smallest debt is paid in full, you roll the money you were paying on that debt into the next smallest balance.
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