Too many Americans are starting the new year stressed over their money concerns. But taking too rigid of an approach to your financial resolutions can backfire. Want to raise your chances of keeping them this time? Be patient, and understand that change doesn’t happen overnight. Make a short bullet list of where to start, and then post it in a visible location so you can keep returning to it for inspiration.
Create Better Money Habits That Stick
Reviewing what experts consider to be smart money habits can help you tailor a plan that is more likely to work for you. But use your own judgment, as well. If you are a highly visual person, you may need to place physical reminders around the home. If you know you tend to overspend, some extra spending controls may be in order.
Below are some highly effective tactics when developing healthier money habits:
1. Set clear, measurable goals. They are easier to track and achieve. When you get overwhelmed by larger goals – like getting out of debt – break them into smaller, actionable steps, such as saving a specific amount each month or reducing expenses by a certain percentage.
2. Crunch the numbers. Have you heard of the 50/30/20 rule? While not a perfect science, the formula was popularized as a guideline to helps regular people create more realistic budgets for themselves:
- 50% for needs (housing, food, utilities)
- 30% for wants (entertainment, dining out)
- 20% for savings and debt repayment
This step requires doing a little math to get clarity on what’s in your budget. Adjust the percentages as you see fit so you know how much cash can realistically be allotted to your main spending areas.
3. Track all incoming and outgoing money. Review your budget every month to ensure you’re hitting your targets. If you find you’re overspending in a certain category, find areas to trim (e.g., dining out or subscription services).
4. Take small steps toward debt reduction. If paying down debt is a goal, figure out which approach will have the biggest impact: the snowball method (paying off your smallest debt first), tackling the highest-interest debt first, or something else.
5. Use money services to organize your finances. Never underestimate the power of outside assistance when creating better habits. Perhaps reminders from a budgeting app on your phone is all you need to stay on budget.
Swapping out your credit card for Cash2Go’s prepaid debit cards is another sure-fire way to reign in one’s spending. Meanwhile, electronic bill pay and utility payment services could help you pay your monthly bills on time and avoid late fees.
Be Strategic When Shopping
With the holiday shopping season behind us, it’s easy to forget that some of the best prices hit the shelves in January. You can count on markdowns for common gifts like small electronics and kitchenware. Gym memberships and goods that appeal to healthier habits also tend to cost less at the beginning of the year.
Be wary of sales; don’t buy clothing just for the discount. However, if there’s something you need, do a little digging to find out when the best time to shop for it is. Contacting the business directly may tip you off on deals that are just around the corner.
Don’t Forget Auto-Related Resolutions!
Are you shopping for a used car? More vehicles will enter the market as people sell their old vehicles after buying new ones over the holidays. That increased supply can lower prices, making January and February a good time to buy.
Are all of your auto stickers and vehicle registration needs on the calendar? You don’t want to miss those deadlines! Cash2Go will help you take care of routine tasks in a jiff so you don’t risk getting ticketed and facing financial penalties while out on the road. What can we do for you?
- Renew your license plate
- Transfer your vehicle title & plates
- Register your snowmobile
- Register your trailer
Let Cash2Go Financial in Illinois Help Your Organize Your Finances This Year
Cash2Go Financial locations offer a broad variety of services to help folks throughout northern Illinois manage their finances and auto needs.
Call 847-269-2274 or check out your nearest Cash2Go Financial location today!