As we approach the end of 2015’s first month, many people have already forgotten or abandoned their New Year’s resolutions. But it’s not too late to make 2015 the year of more green.
Check out the steps to reach your financial goals.
1. Track Spending
The first step is to identify how, when, and where you spend your money. Review bank and credit card statements to see where your hard-earned bucks are going.
You may be shocked.
2.Develop a Realistic Budget
“Budget” may be one of the most feared words in the English language. But budgeting is a critical step to all good money management. Create one you can live with.
Once you have budgeted all non-negotiable expenses (i.e. rent, utilities, car payments), start prioritizing your discretionary spending and trim where you can.
3. Manage Debt Wisely
Paying down debt was the most common New Year’s Resolution for 2015, with 75% of Americans saying it was on the top of their list.
Consolidate existing balances to lower your interest rates and better terms so you can better manage debt.
4. Make Goals & Stay Committed
Paying down debt is a lot less fun than racking it up, no doubt. If you need a little extra push, set milestones with rewards to stay motivated. Meeting your financial goals deserves a vacation, a day at the spa or a night out.
5. Watch Your Credit Report
If you plan to buy a new home or car, be sure to watch your credit report. Correcting any errors right away will save headaches during the loan application process.
If you need help on building your credit, contact Utah First Credit Union to see how we can help.
6. Improve the Terms of Your Accounts
Many Utahans don’t know the terms or interest rates of their accounts. Check your current interest rates on all accounts—chances are you can improve at least one.
Refinancing your home or your car can greatly impact your monthly payments. Also, consider a balance transfer to a low-interest credit card if your current rate is above 5%.
7. Save, Even a Little
Personal finance experts recommend that you place at least 10% of every check into savings. For people trying to overcome debt, this may not be realistic at first.
Determine how much you can save each month, even if it is only $50, and put it aside. As you begin managing your money and debt more wisely, increase the monthly amount. An increasing balance helps maintain motivation.
Need help reaching your financial goals? The experts at Utah First Credit Union can help you at any stage. Contact us to learn how our financial solutions will help you make 2015 the best financial year yet.
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