Planning and Saving in 2015, Your Best Financial Year!
The holidays may be a distant memory past, but the debt you incurred while trying to make sure you gave everyone the present of their dreams has not. It’s time to get out of the red and into the black with some easy tips on budgeting and saving in the New Year!
1.) Make sure you’re getting the most out of your financial institution. Not all banks are created equal, and certainly not many (or any!) banks are better than credit unions (in our humble opinion). Does your financial institution offer free checking? Low interest rates on auto loans and mortgages? ATM fee refunds? Make sure you shop around and find a place that suits your service and financial needs.
2.) Establish your financial goals and then prioritize them. People often feel overwhelmed with everything they should be saving for, like paying off debt, buying a car, and/or building savings. It can feel a lot less impossible if you work towards one goal at a time. Decide what is the most important to you, and save for it. When you reach that goal, you’ll feel so good you’ll be ready right away to jump into your next savings project. Be sure to check out RMLEFCU’s Custom Savings Accounts!
3.) Track your spending and your income for a week or two. Don’t estimate, don’t skimp on recording, and don’t forget to record every single time you purchase something. Be incredibly precise and attentive, even if it’s just for a week or two. You’d be amazed at how fast little splurges can add up. With everything right in front of you, you’ll be sure to find some easy places to save a few dollars. Check out some helpful apps like Mint or Expense to make this easier.
4.) Build a budget. This is the best idea on this list, and the reason it comes so late is because it can seem overwhelming if you haven’t prepared for it. Luckily, you have! You’ve tracked your spending and established financial goals. Now make a concrete plan on how to reach those goals. Check out this website for help in creating a manageable budget. Make sure you stick to it!
5.) Contribute to a savings account every time you receive your income. You don’t even have to think about it, just set up an automatic deduction and watch your savings grow! Here’s another hot tip: every time you splurge on a treat, put the exact amount into a savings account as well. It’s an easy way to be mindful of your splurges as well as contribute to your savings.
6.) Don’t splurge with extra income like bonuses or reimbursement checks. It seems harmless to spend it because you weren’t expecting it anyways, right? But you know what else you weren’t expecting? Medical bills. Car expenses. Home repairs. Put that extra money right into your savings and you won’t be taken off guard.
Be sure to check out our website for more information on savings accounts and how to make this your best financial year!