As 2020 comes to an end, many of you might have started to think about New Year’s resolutions – get more exercise (especially after all of those Thanksgiving meals) or spend more time with loved ones are some that immediately come to mind for us.
But do not forget the importance of financial resolutions! Here are some helpful tips to get you started –
1. Spend less than you earn. This is one of the simplest and most important tips we can give because saving money will give you options to improve your life such as preparing to buy a home or paying for a family member’s education. To help you save more for the new year, we’ve included some budgeting tools to make it easier to track your spending.
- Mint – links your bank accounts and credit cards into one easy-to-track platform
- Albert – gives you personalized tips to save more using proprietary technology
- PocketGuard – categorizes your spending into bills, groceries, food, etc.
2. Pay off your debts. After you’ve followed tip #1, we recommend that you use your savings to pay off any existing debt. This includes credit card balances, loans and mortgages. Paying interest on debt becomes more expensive with time, so the faster you can pay it off the better and can save you thousands of dollars in the long term.
3. Improve your credit score. Tips #1 and #2 will help you achieve this goal, and with a better credit score you will be able to get cheaper loans and better credit cards in the future. If you don’t know your credit score yet, you can easily check your credit score here.
By following these tips, you will be off to a great start in 2021!