Prep Your Finances for Success in 2016

[ 0 ] January 4, 2016 |

With 2016 already here, many people will make resolutions to manage their personal finances better.  Whether that means saving more, or setting up a personal budget, the suggestions can get overwhelming.

Here are four easy personal finance goals, for you to consider, to start the New Year on the right path:

 

1. Set up a money management system that works for you

Different systems work well for different folks, but here are a few ideas:

  • Write down your income and all of your monthly expenses. Look for opportunities to trim expenses, wherever you can.
  • Identify the areas where you might overspend, and then decide to use cash for these transactions. Then, limit the amount of cash you put in your wallet each week to the amount you’ve decided to spend. Seeing the amount of money available as a fixed, finite thing can help you control your spending.
  • Set up automated budget alerts with a service such as FinanceWorks.

 

2. Review your credit reportBusiness concept of budget for 2016 new year. Chalkboard with coffee cup on wooden desk.

Visit www.annualcreditreport.com to receive one free credit report annually from each credit bureau.

If you’re having trouble understanding how to improve your credit, a free credit report review through the GreenPath Financial Wellness program can help.

 

3. Begin to save

Once you’ve got a workable budget, automate the process of saving. Setting up direct-deposit into savings makes it much more likely that you’ll save. Plus, paying yourself first helps the money to be “out of sight and out of mind,” so that you’ll be able to stick more closely to the spending plan you’ve set for yourself.

It’s important to reach a point where you have a balance between short-term savings and long-term (retirement) savings. It should be a priority to try to adjust your budget, so that you can take advantage of any employer-sponsored retirement plan that your job might offer, especially if the employer offers a contribution match.

 

4. Get serious about reducing debt

One of the first steps in decreasing your debt load is to stop adding to it in the first place. Begin to get out of the habit of using credit cards for purchases.

If you have consumer debts, look for ways to try to reduce your overall interest costs and fees.

Through our credit union’s partnership with GreenPath, you have access to financial counselors who can help you come up with a plan to get your debt under control.  To learn more or talk to a counselor for free, call 877-337-3399 or visit www.greenpathref.com.

GP Financial Wellness Logo TM

 

 

 

 

Tags: , , , , , , , , , , , , , , , ,

Category: Featured, Guest Blogs, Money Tips

About the Author ()

Leave a Reply

Time limit is exhausted. Please reload CAPTCHA.