We are fully into the new year and that means getting your health and fitness back on track. But what about your finances? If money resolutions are not on your list, experts say they should be.
In this weeks Intentional Living we have a few ways to improve your financial life this year.
Resolving to do better this year? According to a new fidelity investments survey, nearly one-third of Amercians plan to make a money resolution this 2019.
*48% plan to save more.
*15% hope to spend less
*And 29% plan to pay down debt.
But when it comes to debt – experts say many people are taking the wrong approach. According to Financial Planner, Chris Burns, “They’ve got that Christmas bonus or they’ve got that tax refund coming. The urge is take every dollar to pay off those credit cards.”
Instead, experts recommend you put that money into a savings account. Burns says, “build an emergency fund, recommending three months of savings. That way when life happens, you can pay for it with cash.”
Tip number two – Start tracking your spending. Experts say what you don’t measure you can’t manage. So use those apps to track down your expenses and see where you can cut back. Burns says, “when you can’t actually see where your money is going, inevitably you end up spending it in ways you’ll regret.”
As you you work towards saving money and cutting expenses, make sure you also set up a fund for fun. Burns emphasizes, “If you don’t, you are going to burn out. If literally every extra dollar you have is going to saving and you’re die hard and you’re going after it, something will come along and wreck that and you’ll drop the whole thing.”
Ways to save money are to cut back on that cup of coffee, cut back on eating out, going out with friends, or even clipping coupons.