Posted 6 weeks ago (January 5, 2012 at 10:00 AM) in Dealing with Debt
On December 31st, losing weight, quitting smoking, volunteering more and drinking less are some of the most popular promises made at midnight but most folks could also dramatically improve their lives by aiming their resolve squarely at their finances. Consider putting these three New Year’s financial resolutions on your list for 2012!
I Resolve: To be aware of my entire financial situation.
The easiest way to run into money trouble is to be running blindly! Take stock of all of your assets from cash to checking accounts, savings, stocks, bonds, properties – whatever assets you have, know what they are and keep them in mind so that you can manage your assets wisely in 2012.
One great example of why this New Year’s financial resolution is extremely useful is based on your existing debt. Be aware of your lines of credit and the interest rates you are paying on them because a consolidation loan has the ability to merge all of your credit sources into one. In addition to saving you headaches by simplifying your finances, it could possibly even lower your interest rate to save you money!
I Resolve: To know the nature of my credit status.
If you do not already have a credit-checking cycle, start on January 1st so it’s easy to remember when to check your credit once a year. You will want a copy of your credit report to be sure that it is accurate and a copy of your FICO credit score. These are available for purchase, or for a close estimation that costs nothing you can visit quizzle.com to get a general idea of your current state of credit.
Knowledge is power, and knowing the state of your credit-worthiness helps you make informed financial decisions and enables you to guard yourself against fraudulent activity. If understanding the wide world of credit is on your list of New Year’s financial resolutions, our article on credit basics is the perfect place to start.
I Resolve: To take responsibility for my spending.
Throwing away money frivolously is exactly equal to wasting your time – because it takes your precious time to make money in the first place! Spend the entire month of January tracking all of your income and all of your spending.
Many people do not understand how they make so much money but constantly feel broke. It’s important to find out why, when, and how you spend your money so that you can make affective choices about how to alter your habits to meet your goals.
Check out our article on financial apps that can help you track your finances and take responsibility for your spending even while on the go, when most spending usually happens!
Even if doing your finances is not your cup of tea, putting your foot down and making a stern decision to properly manage your money in 2012 is a great start to improving your life. If you find yourself in need of lending advice this coming year or are looking for ways to build your credit on your unique budget, call or stop by your local SFC branch today!