The new year is here, make your personal finance one of your new year’s resolution. Resolute to make your finances better this year. If you’re wondering how, this article might help you. You may be already financially very secure, but it can be more secure. On the other hand, if you’re already struggling with your finances then there are plenty you can do this year.
Being financially secure is a goal most of us would like to achieve. Having debts that we need to pay back, bills that are due, and savings that are small can make our future seem a little unstable, and this, in turn, can cause some unwanted extra stress. To help you out, there are a few things that you can do in this coming year that will help you to be more financially secure, and they are listed below.
Paying Back Your Debts
The main cause of the financial instability is usually due to debts. When you owe money – especially if it is a large sum – this has a way of overwhelming your financial situation. Each month you need to divert funds you would rather spend elsewhere in order to pay back a debt. On top of that, interest rates keep the debt going up, so it can feel like you are not making any progress.
This is why paying back your debts should be a primary focus. There are a few ways that you can go about doing this. First, you can try consolidating your loans into one large loan, at hopefully a smaller interest rate. This makes managing your debts easier and hopefully saves you some money.
Another option is to try and refinance your loan and get a better interest rate. If your credit score is good, and you have been making payments for a while, this may be an option to you.
Especially if you have high-interest credit card debt, you can apply for a personal loan (here are best options to apply for a personal loan online), they carry less interest. You can pay back the high-interest debt with your loan, effectively reducing total interest you’ll be paying fo the life of the loan.
Your third option is, simply to try and pay back more of the debt each month. The sooner you can pay it back, the less you will owe in the long run. Take a look at what you spend money on each month, and see if there are any areas that you can cut back.
Any money you save – or any extra income that you earn – should be applied directly to your loans. Every little bit helps, and will get you closer to your goal of being debt free. Here’s my post, 51 ways to get out of debt, have a glance there.
When you have a decent amount of money in savings, your future seems a little more secure. You can rest easy knowing that if something were to happen, you would have an extra store of money to help you out. Savings plans are easy to implement, and can really help you out in the long run – whether it be in an emergency, or for something planned like retirement or college tuition. Here is more information about how you can effectively start saving.
Savings plans are easy to implement, and can really help you out in the long run – whether it be in an emergency, or for something planned like retirement or college tuition. I have more information to effectively start saving here.
Basically, saving is a mindset change, it’s a process that you must go through. Saving money is all about delay gratification. Saving it for future purpose. Saving is important as saving fuels investment engine and saving makes your retired life safe and sound. Saving ensures that you don’t have to work to live during your golden years.
Invest Your Money
One way that people make their financial future more secure is by investing their money. When your money is invested in other places, you are giving it the opportunity to grow into a larger sum. However, while getting started with investing is relatively easy, there is a lot to know before you can be successful at it.
We suggest doing as much research as you can before choosing an investment strategy. Another good idea, if you use social media sites, is to find investment companies and brands on these sites and connect with them.
Investment is always better than keeping your money in a checking or savings account. An investment gives you more return in long term. Here are some basic ideas for investing with just $1,000. Earlier, I wrote investment strategies for beginners, if you will.
Plan Ahead And Stick To It
You won’t be financially secure until you come up with a solid plan and force yourself to stick with it. A personal budget is great for this, as it allows you to see what you are earning and spending each month. There are even a ton of budgeting mobile apps that make tracking your info easier than ever. For us, the best method of creating and maintaining our budget is through an excel sheet on Google docs, which my wife can also access and edit.
Once you have a budget, you can easily find out how much you can afford to put towards debts, savings, or investments from your salary. This might as well encourage you to find ways to earn more money, be it working towards more wages or taking up part-time job opportunities.
Once you know this information, you can more easily find out how much you can afford to put towards debts, savings, or investments.
While you may not reach your goal of being financially secure in new future, you can, at least, take steps to get yourself heading in the right direction. Explore the methods listed above, and before you know it, that financial freedom you had been searching for will be yours.
Joshua Bartlett says
I always look forward to year end and not just for the holidays meals! The end of the year means a bonus and a tax return is right around the corner. I will definitely be paying down debt this year and hopefully I will be able to take a big chunk out of it to start off the new year on the right track!
Thanks for the tips!
This is the time for the new year resolutions, so your article timing is perfect!
Great tips here. My new year’s resolution is to improve my finances and budgeting skills, so it’s good to use some of the things brought up here!