If you got a little overzealous with your holiday spending, first of all: join the club. Second, don’t worry! The New Year is the perfect time to start getting your financial resolutions in order.
Here are some tips that can help you get off on the right foot:
- Automate your savings.
By setting a specific amount and frequency to transfer to your savings, you won’t have to think about actively saving and can be prepared for any unexpected expenses.
- Create a budget. It’s extremely important to have an idea of how much money you’re bringing in and where you’re spending it. Once you do, you’ll be able to adjust any overspending and change your goals accordingly.
- Tackle debt. The average American has $5,551 in credit card debt, which is particularly hard to think about when you consider interest accrual and credit score impact. If you have a goal to get yourself out of this type of debt, start by reviewing all of your outstanding debt payments. Identify the payments with the highest interest rates, and pay those off first.