If you’re looking to start 2021 off on a better financial note, these five budgeting moves will (hopefully) help to make your new year less stressful.
#1: Spend Smarter
Little changes can make a big difference. Try doing things such as:
- Foregoing your morning latte and brewing a pot at home instead
- Cooking at home rather than going out to dinner
- Not buying new clothes regularly
- Checking for a new phone or cable plan
#2: Reduce Debt
Getting rid of, or at least reducing, your credit card debt can relieve an immense amount of financial stress. Start by paying off the credit cards that have the highest interest rate before working your way down the line to lower-interest loans.
#3: Track Expenses
If you track exactly where your money is going, it will give you a greater idea of where your overall financial picture stands. Simply understanding where your money is going can help you to really own it, which in turn, can lead to greater financial independence.
#4: Create an Emergency Fund
Whenever you can, put any extra money aside at the end of the month into an emergency fund for unexpected expenses, such as house repairs, car repairs or healthcare costs.
#5: Start a Spending Plan
Once you’ve worked diligently to reduce debt and build an emergency fund, start a spending plan. When you do this, you’ll need to track your income while making a plan for all that you are earning. You can prioritize your spending once you have allocated the funds to cover expenses. This should hopefully help you breathe a little easier as you spend money while staying on track.
This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. (C) Twenty Over Ten.