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Improve Your Financial Health in 2020
December 9, 2019
The holiday season is in full swing, and before you know it the new year will be here. It can be tempting to throw your budget out the window during the holidays, but don’t do it! There are simple moves you can make to start 2020 off financially strong.
Stick to a Holiday Budget. Set a limit on your holiday spending and stick to it! With holiday sales and promotions, it can be easy to go spend more than you anticipated, but you don’t want to start off the new year in debt or stressed from overspending.
Review Your Budget. The end of the year is a great time to review your spending and cut back on expenses. Are there subscriptions you don’t use? Could you cut back on a couple lattes before work each month? Look at where you overspent in 2019 to save in 2020. It’s also important to note any financial changes that happened in 2019 – did your income change, did your debt increase/decrease, are your bills the same? Try Centier’s Money Management tool for budgeting.
Plan to Pay Off Debt. Even if you can’t pay off all of your debt in 2020, commit to paying off a little more than you are currently. An extra $25 or $50 each month can help you become debt-free sooner than later. There are two methods people often use to help get rid of debt – the avalanche method and the snowball method. With the avalanche method, you work on paying off your highest rate loan first. With the snowball method, you start by paying off your smallest debts first.
Check Your Credit. Take a careful look at the details on your credit report to make sure there aren’t any errors. Catching any mistakes early is key to saving you from a major headache. Review your credit score and find out if there’s room for improvement.
Set Financial Goals. It can be motivating to set financial goals for yourself in 2020, and it will feel so good when you reach those goals! Make your goals attainable and make sure they don’t stretch you too thin, or else you’ll get frustrated and give up on them before you have a chance to succeed. Maybe your goal is to put an extra $100 per month into your savings, to pay off your credit card, or to max out your Roth IRA - no goal is too small to make a difference in your financial health.
Start taking these simple steps to set you up for a brighter financial future in 2020!