Make 2020 the year to focus on your financial success. Here are some helpful tips to help you start this new year off on the right financial track.
Create and stick to a budget
Starting the year off with a budget is a great way to plan your financial success. Review how you spent money last year and determine how you can make better financial decisions this year. When it comes to spending, identify wants and needs. Your needs are necessary for survival like food and shelter. Wants are just things you desire like a beach vacation. Take care of your needs first and if there’s money left over, consider your wants. Track your spending with My Financial Partner, a free online tool that lets you keep track of your spending and calculate budgets.
Use credit to your advantage
Paying your credit card balance in full and on time every month improves your credit score and shows lenders you are financially responsible. Keeping your monthly credit card purchases within reason will make it easier to pay off your credit balance each month. It’s not a good idea to take your balance to the credit limit or even close to it as lenders will view this as a red flag. Use a credit card to your advantage—make it a tool that helps improve your overall credit.
Build good credit history
Your payment history makes up 35% of your credit score. That’s why it’s so important to make sure you’re paying your bills on time. Set up reminders on your phone when payments are due, set up automatic payments or use Bill Pay so you’re never late.
It’s also important to make sure you’re paying off all your debt on time. Try paying off as much debt as you can each month. The smaller your debt-to-income ratio is, the better your credit score will be.
Make a list of every outstanding debt you currently have including credit card debt and any kind of loan. Choose one debt to start tackling first and figure out a plan for how to pay it down.
It’s a smart strategy to pay off debts with the highest interest rate first. You’ll end up saving more money over time. You could also pay off your smallest debt first to help you build some momentum and feel like your making progress. Once you’ve paid off your first debt, move on to the next one on your list. Use our free online debt calculators to help you determine how you’ll tackle your debt.
Register for our seminar
Join us for our free seminar—Seeing Finances with 2020 Vision. We’ll discuss ways to design your own financial success in 2020. Register online to save your seat. Hurry, the seminar is Wednesday, January 15!
Focus on your financial success this year with these helpful tips and tools. We hope you have a prosperous and great 2020!