Some people are over the idea of resolutions altogether, but a new year represents a new opportunity to make a change for the better - why waste it?
There are plenty of financial tips you can incorporate into your everyday that can help you save money and pay off debt. The following are a few building blocks for getting your “financial house” in order to start seeing some real progress when it comes to spending and saving wisely.
1) Create a Budget
It’s never been easier to create a budget than it is right now. The previous generation had to write everything down on a notepad – but we have so many automation tools to help us stay on track.
From budget-inspired Google doc templates to dedicated budget apps like YNAB (You Need a Budget), you can create and maintain a budget just as easily as you could post a photo on Instagram.
Keep your debts as a section of your expenses, and prioritize those payments just as you would your rent and mortgage payments.
Need help figuring out a debt repayment amount that works for you? Check out a debt calculator (like those on the Credit Canada website) to help you visualize what debt repayment looks like with different strategies and amounts.
2) Set Aside Money Every Month
Even if you don’t have a specific goal in mind, it’s always a good financial practice to set aside a little bit of money every month. This cushion will help you address any unexpected expenses that might be waiting just around the corner.
Saving money every month helps you tackle new expenses without sacrificing your debt payment obligations. Nervous that you’ll forget to move the money? Automation is your friend. Most banks allow you to schedule automatic fund transfers to a savings account.
3) Chill Out on the Delivery Apps
Let’s say the grocery store closed a bit earlier than usual this evening, and you didn’t prioritize your trip this week. Oh well, looks like it’s an Uber Eats kinda night.
Yikes, the deli has a lineup outside because of social distancing rules. You’re not waiting – Uber Eats again! Next thing you know you have an extra $300 on your credit card bill at the end of the month. What gives?
Delivery apps charge way more for food than what you’d pay at the restaurant itself. And they certainly cost even more than what it costs to just trek to the grocery store and buy the ingredients to cook a meal at home.
COVID restrictions forces us to think carefully about our meal planning, with store hours changing and capacity limits decreasing.
Be intentional with your food spending. Try to plan your meals ahead of time so you don’t rely on money-guzzling delivery apps like Uber Eats, DoorDash, or SkipTheDishes.
4) Start Reviewing Your Credit Card Statements
Review your credit card statements every time you receive them. This might be difficult to remember, especially if you receive electronic statements instead of paper, but it’s important to routinely check your credit card statements for a couple of different reasons.
Check your credit card statements to be aware of your financial state, and also to make sure there aren’t any errors. This will help you identify problem spending and ensure you make your payments on time.
5) Talk to a One Link Mortgage Broker About Your Current Mortgage
Use the start of the new year as an opportunity to check up on your current mortgage to ensure it reflects your current financial situation. COVID has affected many parts of life and maybe your mortgage needs some changes. Mortgage rates are still record-low, so now may be a good opportunity to refinance and lower your monthly payments or discuss consolidating debt. To determine what your best mortgage options are, contact a One Link Mortgage Broker for a complimentary consolation.
With a little bit of planning, you can be financially successful in 2022. You’ve got this!
Source: Gursh Singh – Credit Canada