As the calendar flips over, it is time for a new start. Most of us will be quite happy to say goodbye to this stressful year, particularly since it has affected almost everyone’s finances.
Not surprisingly, finances are at the top of list for New Year’s resolutions this year. Here are some of the most popular and how you can achieve them.
Save More Money
According to an Experian study, almost half of respondents want to save more money. If you can’t earn more, spending less is the simplest way to put more money in your bank account.
Pay less for insurance by exploring discounts, bundling policies, and re-examining the balance between deductibles and premiums. Set up automatic contributions of these savings to your401k or high interest savings account.
Carrying multiple debts is frustrating and inefficient. Consider consolidating high interest balances within a low interest loan or line of credit. You’ll enjoy one low rate, one monthly payment, and one repayment term.
It’s simpler, costs less to manage, and it is much easier to see your progress too. Plus, debt consolidation may also give your credit score a boost as it pays off many small balances in full.
Improve Your Credit Score
Credit is so important and it can affect the cost of almost anything you buy. This includes your insurance.
Insurers rely on credit scores, because they consider them a reflection of risk. If you have a credit score below 700, you’ll likely pay more.
Order your free credit reports, check for errors, and correct discrepancies. Pay on time and don’t take on unnecessary debt. Don’t forget to add free fraud alerts to your credit cards.
Create an Emergency Fund
The pandemic has showed us how important it is to stash away extra money. We never know what might happen.
An ample emergency fund can help you get through a major disaster, medical issue, or sudden income reduction. Gradually save between 12 and 18 months of take home income for a comfortable cushion.
Weekly Finance Review
You can’t keep on top of your finances unless you monitor your spending and savings and review them regularly. Consider using a budgeting app and then set aside time each week to find out where you’re succeeding and where you can improve.
You will have bad weeks, but don’t let that stop you. Just reset, readjust, and start your next week armed with new knowledge.
Realign Insurance Coverages
Insurance is meant to protect you when unpleasant things happen. However, it can only do this if your insurance policies and limits are in line with your needs.
If you haven’t revisited your insurance in some time you should schedule an appointment with an independent, local insurance agency like ours. We can realign your insurance policies to your current situation and balance cost and coverage.
Hopefully, 2021 will be a much better year and you won’t need to file any claims, but you need to be prepared for whatever life might throw at you. A review takes little time, but it offers peace of mind in our tumultuous world.
Our team would be happy to review your current policies to see if we can improve your coverage while saving you some money in the process. Give us a call, today.