Isn’t it funny that a popular New Year’s resolution is to get thin— yet we’d also like to “fatten up” our bank accounts?
If your checking account looks a little scrawny, you’re not alone.
Spending less and saving more is one of the “Top Ten” New Year’s resolutions every year.
After setting a budget, look for ways to cut costs or make extra money. Here are some tips for putting your financial house in order for 2020:
Pay off high-interest credit cards
According to NerdWallet, credit card debt has increased almost 6% in the past year and more than 34% in the past five years. The sooner you get rid of the debt, the better.
Automate payments
Let’s face it. Life happens and you may forget a payment date. Which means hefty late fees. Why give creditors more money than they deserve? Automated payment services can help you keep on track and avoid those penalties.
Build an emergency fund
Avoid having to use expensive credit cards—keep an emergency fund for those “rainy days.” Try to save enough to cover 6-9 months of basic living expenses.
Check your credit reports
You want to make sure your data is accurate. Access your credit report from each of the main credit reporting agencies at no charge through Annualcreditreport.com or by calling 877-322-8228.
Plan your vacation
Longing to go on a nice vacation? Commit to putting aside a little money each month to go toward your trip. When the time comes for that summer vacation, you won’t have to go into debt to pay for it.
Take on a side hustle
Consider taking on a few paid gigs on the side to earn extra cash. Dog sitting, building IKEA furniture or becoming a virtual assistant. Check out sites like Rover.com or TaskRabbit.com to find opportunities.
Cut back subscription costs and monthly bills
Monthly bills have increased as more companies transition to a subscription model. Are you still paying a monthly fee for an app you don’t use? Or a cable network you don’t watch anymore? Cancel them and save your money.
With some intentional planning, you can cut costs and put the extra savings into your bank account. More for your dreams of retirement! If you’d like more ideas, give us a call at 513-563-PLAN (7526) or book online and let’s find that “hidden money” for you.
Regards,
Dan Cuprill, CFP®