Still catching up on your holiday spending? Feeling some stress during this difficult time? Now is a great time to assess your financial situation and change behaviors so you can create a more financially sound version of YOU moving forward. Here are three tips to help you move along your path.
-
Learn more about money management: When was the last time you took a class or read an article that taught you how to manage your finances? If it’s been more than a year, now is a good opportunity to spend some time doing this. The Financial Health Checkup on our Financial Resource Center is a great place to start. As you learn how to better manage your own finances, your confidence will increase, and your financial habits will improve.
-
Create a budget: Having a budget is THE most important thing you can do. At work, your employer tracks your efforts (input) and your results (output) to help them predict whether you will succeed in your job. A budget is the same thing; it helps you track your input vs. output. Your success is based on your ability to utilize, adapt, and manage your budget. Also, keep in mind that the amount you spend one month may be different than what you spend another month, so when you’re making a budget, it’s best to analyze your spending information for several months instead of just one. Then, get in the habit of reviewing your budget regularly to see where you need to make adjustments.
-
Start automating your savings: Don’t leave this up to will power and don’t wait “because this isn’t a good time.” With your next regular paycheck, open a secondary savings account and set up automatic deposits into your account. Even $5.00 a week can help jumpstart a savings account. It may not seem like much, but over time, you’ll develop confidence that you can save money. Before you realize it, the $5.00 will increase to $10.00 per week, then $20.00 per week. Automating the process will make saving easier.