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The new year gives you an opportunity to change your financial habits in ways that can benefit you throughout life. Follow these three tips to make 2019 your best financial year yet.
Many people don’t know how much money they spend. As long as they have access to cash or credit, they don’t worry about budgeting their money.
You can change this attitude by tracking all of your expenses for a month. Make sure you include small items like chewing gum, coffee drinks and lunches, as well as big items like mortgage payments.
Once you track your spending, you will have the information you need to establish a budget that tells you how much money you can devote to entertainment, debt repayment, food and other items.
Part of your budget should include savings goals. Each month, you should know exactly how much money you will put into your savings account.
Make sure that saving gets prioritized over non-essential spending. If you fall short of your savings goal, then you need to redirect money from elsewhere in your budget.
If you already have a savings goal, try to increase the amount by 10 percent. By following this plan, you will save more money each year. It may feel somewhat difficult now, but you will reap the benefits when you face a large, unexpected expense.
The average household with credit card debt owes about $16,900. The interest on such a large amount of money can make it nearly impossible for people to use their money wisely. Instead, they get stuck in a cycle of debt.
Make 2019 the year that you break the cycle.
If you have high-interest debt, such as credit card debt, then you should devote as much money as possible to repaying the full amount. Ideally, you can eliminate your debt before the end of 2019. If you have so much high-interest debt that you cannot repay the full amount within a year, then do your best. Every dollar you repay will help take you a step closer to financial freedom. If you are really struggling and looking for options such as debt relief, consider a reputable company such as Freedom Debt Relief as you explore your options.
No matter what your finances look like today, you can improve them over the upcoming year. Set your goals for 2019 and follow through so you can get on track to financial success.