Making the Most of Your Money in 2016
January 4, 2016
Getting Out of Debt, Managing Your Debt, Paying Off Your Debt
Search any list of New Year’s resolutions and you’re sure to find at least one related to saving money or getting out of debt. It’s a resolution that’s hard to keep though, as you being to recover from holiday spending and the same bills start to pile up.
As you kick off the New Year, consider adopting these smart strategies to help put you on a track for a more financially sound 2016.
- Track your spending (and spend less). The first step to getting smart about your money in 2016 is being aware of how much you’re spending, and what you’re spending it on. The best way to do this is to create a budget, and stick to it. Include every dollar that goes out and every dollar that comes in – once you can see where you’re money is going, you can begin to make a plan for saving – and even getting yourself out of debt.
- Save when and where you can. It can be hard to put back a few bucks when you’ve got bills to pay, but something is always better than nothing, and over time, those small amounts can add up. Look over your budget and see where you can cut back, then put the difference into a rainy day account. That might mean skipping out on the $5.00 coffee every other morning, but the peace of mind that can come from having a decent savings is well worth the small sacrifice.
- Own up to your debt. It can be hard confronting your debt, especially if it’s a large amount, but until you do, you’ll never be able to craft a plan to overcome it. Gather all your bills and statements, and take a look at where you’re at – then begin to determine which bills you can start paying down.
Consider this, as reported by the website, Bankrate:
“The average American owes $8,329, according to a 2009 survey by The Nilson Report, a Carpinteria, Calif.-based newsletter on consumer payment systems. If you’re carrying that load with a 15.99 percent APR and making minimum payments of $167 per month to start, it will take you 33 years to pay off the debt. And you’ll pay $15,289 in interest. But kick in an extra $35.50 per month (paying $202.50 every month), and you can pay that same debt off in five years. Total interest: $3,821.”
To begin getting a handle on your financial situation this year, call the law offices of George R. Belche. We offer free initial consultations, and can help you begin crafting plan that will help you get back on your feet.
