How to be Financially Prepared for the New Year

Every year when the new year begins, we set resolutions for ourselves that we are excited about for the first few weeks of January, but eventually are never fulfilled. Between losing weight and eating healthier, this year stick to a goal that will be beneficial all year long. Start the new year off right by being financially stable as we discuss some ways to be financially prepared for 2017.

In the new year consider expanding your personal finance knowledge says Huffington Post. It never hurts to learn something new so any time you are in a place where you are waiting or while you’re driving listen to a podcast or an audiobook about finance.

U.S. News & World Report suggests that before the new year starts take a look at your monthly bills and cut out what you don’t need or is not a necessity. You may be paying fees that you don’t know about when you pay your bills late or there may be services you no longer use. Look for ways to minimize as much as you can like lowering data plans on your cell phone bill or reducing TV channel packages.

If you are struggling with credit card debt, consider consolidating your debt to save more money. Huffington Post says “Creditworthy borrowers can use an unsecured personal loan, offered through marketplace lending companies like Prosper, to pay off high-interest debt with a low-interest loan.” This is definitely a great option for paying your debt faster.

If you want to save a little extra this year a great way to do it is to automate your savings says, U.S. News & World Report. Let’s face it, how often do people physically move money from one account to saving? By automating this whole process and scheduling regular transfers from checking to savings you are saving up money without having to lift a finger and over time it will become a pretty hefty account.

In 2017, set aside a time each week to stop and look at your finances. Using websites like Mint.com are a great way to organize your finance and keep track of them on the go with mobile apps, as we have discussed in blogs past.

Charles Schwab suggests creating an emergency fund with at least 3-6 months worth of living expenses is a must when it comes to being prepared for the unexpected. Of course saving up for an emergency fund is easier said than done, but there are some ways to slowly put back money. One way U.S. News & World Report says is to renegotiate everything! They say, “Everything is negotiable. Call up all your service providers, and ask for better rates. Tell your bank you want to pay less interest on your credit card. Ask your insurance company for a rate reduction. If anybody balks, shop around.”

Wouldn’t it be great if this time next year you can say that your personal financial history improved and that you implemented some healthy money habits into your life? As we enter a new year, start fresh by taking advantage of some of these tips in your personal finance.

By failing to prepare. You are preparing to fail. – Benjamin Franklin

Happy New Year!

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