There’s nothing like the feeling of a clean, fresh slate to start the new year.
Harness that energy into trying out the tips we’ve shared below, and you’re set to have your most fiscally responsible year yet!
Tips for Growing Your Savings
- Regularly add to savings using payroll deduction and flex-spending plans
- Increase 401(k) contributions with each raise
- Maintain an emergency fund covering at least three months of expenses; there’s tips for that below!
Tips for Managing Your Spending
- Avoid impulse buys and comparison shop
- Carry minimal cash
- Prefer home-cooked meals and plan menus in advance
- Resist lifestyle inflation
- Avoid checking account fees
- Reevaluate expensive habits (smoking, fast food, etc.)
- Be frugal with gift spending
- Regularly assess recurring expenses
Tips for Account Management
- Conduct a monthly review of credit card and account statements
- Steer clear of payday loans
- Regularly check your credit report for accuracy
- Promptly open and pay bills
- Read contracts thoroughly before signing
Tips for Budgeting
- Create a unified household budget for a clear financial overview
- Track expenses using a spreadsheet, app, or paper
- Distinguish between fixed (rent, phone) and variable (groceries) expenses
- Adjust variable expenses to ensure positive cash flow
- Update your budget with life changes
Tips for Building an Emergency Fund
- Set aside funds for unexpected expenses
- Aim to save six months of take-home pay
- Gradually build the fund to the target amount
- Replenish the fund if used
Tips for Keeping Track of Finances
- Understand details on paystubs, bills, and statements
- Record all spending and reflect on each expense
- Regularly review all accounts
- Utilize reminders for reviewing electronic documents
