So maybe last year wasn’t your year to save or wasn’t the year you made it a priority to pay off any loans. Don’t worry, you don’t have to do it alone. CresCom wants to help you turn things around and help you set attainable goals that will make for a less stressful year.
• Make a budget—though this may seem like the most obvious step, this is often looked over which ends up causing people a lot of financial stress and worry down the road. Break your budget down into categories: income, expenses, utilities, food, health, transportation, savings, entertainment, etc. This will help you get an idea of where you need to cut back.
• Look for lower interest rates—see if you can’t refinance or negotiate down your interest rates. As one debt is paid off, put those payments towards the remaining debt. Getting a better interest rate will surely help lessen the total amount spent at the end.
• Build up an emergency fund—by doing this ensures that in an emergency you will have some money available. Some people go by the 50/20/30 rule and say that at least 20 percent of your paycheck should go toward savings and/or your emergency fund. Of course, this will vary depending upon how much an individual makes.
• Diversify your investments—it’s always been said that it’s not good to have all of your eggs in one basket. Rather than investing in one stock, check with your investment advisor about putting into mutual funds, bonds and stocks.