Many Americans are struggling with the increasing costs of regular household expenses and payment of various forms of debts. Over the past year, some have also had to pay huge medical bills, pay back student loans, and work hard to meet up with mortgage and car loan payments. But as we start a new year, you have a great opportunity to make adequate preparation for financial success. Here are 5 tips that will help you to improve your financial situation in 2017.
Set New Financial Goals for the Year
A new year means a clean slate. It’s a good idea to take this opportunity to set some new financial goals. These goals will motivate you to take new steps, initiate new habits and focus on the most important aspects of your financial life in the new year. You should set some major goals for the whole year and then break them down on a quarterly and monthly basis.
Make a journal for the year and place your financial targets on the pages allotted for planning. You should also use the journal to place time-based financial targets on specific dates. To improve your commitment to your goals, you should share them with at least one or two people who will inspire you and check on you periodically.
Increase Your Financial Literacy
To improve your financial situation in 2017, you need to increase your knowledge about basic financial literacy. Make sure you can answer all the five basic financial literacy questions asked in the financial literacy quiz presented by FINRA – Financial Industry Regulatory Authority. If you discover that your financial literacy is quite low, you should plan to learn as much as you can about budgeting, savings, credit, interest rates, investment, assets, liabilities and how to raise your income in the coming year.
Prepare a Budget and Monitor Your Expenses
You may have had about budgeting before, but its importance can’t be overlooked. Writing a budget will help you take a critical look at each source of income and plan for all your regular and one-off expenses during the year. With a well-written budget, you will be inspired to sustain a good saving habit and avoid impulse buying.
Keep Track of Your Investments
To make maximum returns on your investments, you need to review them periodically. That fact that you have an investment portfolio, shows that you desire a better financial future. But you can’t get the best out of your portfolio by setting it up on autopilot. You should take greater responsibility for your financial prosperity by analyzing the worth and returns from your portfolio at least twice in a year.
Consider Consolidating Your Credit Card Debt
If you had a running battle with loans and high-interest credit cards, consolidating your debts could save you money. As long as you are creditworthy, and you have proven to your lenders that you are committed to paying back your loans on schedule, you will qualify for an unsecured personal loan at a relatively low-interest rate. Then you can use this loan to pay back your high-interest debt. Ultimately, you will reduce the cost of your debts and pay them back at a faster rate.
Improving your personal finances in the New Year will require a focused approach and a commitment to adopt better financial habits like budgeting and savings. You may also have to boost your financial literacy so you can invest wisely.
GreenLink Financial is a leader in the consumer finance industry. With years of combined experience in the world of finance, we’ve helped people overcome their financial difficulties and work towards the financial freedom they have always wanted. For more information on our programs or services, call us at 1-844-882-4270 or send us an email at [email protected]