It’s a new year and it is time to make new financial goals. We are going to help you figure out the best way for you to save your money and ensure that you have financial stability for the New Year to come.
Keep in mind, that these are just a few tips that are going to help you get back into a better financial space. You need to remember that sometimes, you need to make sacrifices such as not buying the more expensive appliances or going out for meals every day.. no matter what you decide to cut back on, ensuring that you have money in your account at the end of the month will help keep your stress levels down and will help you get through those rough months.
It is no surprise that one of the top tips for you to ensure financial security is to save money. There are lots of ways for you to go about this. You can save a small amount of money every week or once a month. Soon you will have a nice little nest egg that you can rely on for those rainy days.
Improve your credit score
If you have a credit score below 700, make it a priority to raise it this year. Pay your bills on time and if you can, pay them in full. Pay off your debt and limit how many new accounts you open this year.
Ensuring that you have a good credit score will help you get loans that you might need in the future.
Create a personal budget
A budget can feel constricting for some people however, a budget can help you keep track of money and help you ensure that you spend your money carefully. A clear budget can help you set guidelines for what you can and can’t afford. It will also help you see where you should cut back on your spending.
Pay off a credit card entirely
It is no surprise that after last year, a lot of people have a lot of credit card debt. Try prioritising paying off your credit card debt this year. Rather pay off the debt that you already have than creating more debt that you will not be able to pay off.
There are companies that help you with your credit debt. Ask them how they can help and you can also speak to your bank and see if you can drop your interest rate so that you can pay less but over a longer period of time.
Pay off your credit debt on time
A balance transfer can help you get out of debt, but you can also benefit if you pay off your balance before the intro period ends. In other words, you want to make sure that you pay off your debt on time so that you do not have to pay interest on the money that you already owe.
You can set up a debit order to ensure that you do not forget to pay your credit card on time. this will help you save time as well as help manage your stress as this will be one less payment that you have to worry about setting up or making sure that you pay in case you forget.
Do not open any more credit cards
There is no right or wrong answer as to how many credit cards you should or should not have. Having one is not too little and having 6 is not too much. It all depends on how many cards you can manage responsibly.
You want to make sure that you get rid of the credit card debt that you already have before you take on more debt.
The best way for you to manage your debt is ensure that you have your credit cards up to date and do not owe too much money to the banks and other people that you have borrowed money from.
Check your credit score more often
There are a few resources that you can use for free to check your credit score such as CreditWise, ClearScore and others. These sites will send you emails every month that will allow you to see what your credit score is.
Some of these sites will show you the factors that influence your scores. Others have added bonuses that have simulators that show you the potential effect of certain actions such as missing a payment or paying off your debt.
Now that you have a few tips on how to make this year a better financial year for you, it is important that you remember these changes take time to get used to but once you do, you are going to thank yourself for it!