New Year’s Resolution: Improve Your Financial Wellness
The beginning of the year is the perfect time to turn things around, and aim for the goal of living stress free. Do you know where you stand financially today? Are your personal goals on hold because of your finances? If so, allow us to help you take control of your personal finances and accomplish your goals and dreams. Here are 5 tips that will get the ball rolling for you.
1. Assess your current personal finances and create a budget
The first thing you need to know is where you are in this moment of your life in terms of your finances. Write down all your expenses including mortgage or rent, utilities, education, credit card bills, food, and recurring monthly fees, among others. If you’re spending money, it should be on this list!
Then, set up a budget of how much money you need each month to cover all those expenses and set aside an additional amount that will be known as your savings fund.
2. Be disciplined, track what you spend and make sure it’s less than what you earn
Don’t compromise every dollar you earn. Most people want to level up when they start earning more money. The result is poor money management habits that compromise every penny earned. This year, make sure your spending does not exceed your earnings, and leave some money for your savings fund.
3. Prioritize your debt; pay off the ones with higher interest rates first
Aim to pay the debt that is charging you more interest and try to pay more than the minimum payment required, when possible.
For example, if you have a student loan debt of $10,000 at a 3% interest rate, a credit card debt of $3,000 at a 16% interest rate, and a second credit card debt of $7,500 at a 13% interest rate. To help you get rid of the debt faster, prioritize as follows:
A. $3,000 credit card at 16% interest rate
B. $7,500 credit card at 13% interest rate
C. $10,000 student loan at 3% interest rate
4. Consider a debt consolidation plan
If you put the 3 previous tips in action but you’re still overwhelmed with high interest rates and high payments; a debt consolidation loan might be the right option for you.
Personal loans for debt consolidation can help you pay off all your debt faster and may even save you money on interest along the way. Every case is different and these types of loans are tailored to fit each individual need. Since all debt cases are unique, you may benefit from a free consultation with a debt consolidation loan officer or a personal finance expert.
5. Make healthy money management a habit
Once you budget accordingly and reassess your debt, stick to the plan. Track and monitor your real spending monthly. When you are on the path to living debt-free, start thinking about retirement and emergency funds, and even an investment plan.
* Please consult with your attorney, financial consultant/planner, accountant, and/or tax advisor for advice concerning your particular circumstances. The information contained herein is for general informational and educational purposes only and should not be construed as professional, tax, financial or legal advice or a legal opinion on specific facts or circumstances. The information or opinions contained herein should not be construed by any consumer and/or prospective client as an offer to sell or the solicitation of an offer to buy any particular product or service. Eloan does not guarantee the accuracy of this information or any results and further assume no liability in connection with this publication, including but not limited to any suggestions contained herein.