It’s a couple of weeks into the New Year. Your resolution to be more fiscally responsible is proving more difficult than you thought.Due to life circumstances or the way you were raised can have a lot to do with financial responsibility or irresponsibility and that’s nobody’s fault, we all need to learn.Here are some things you can try to get ahead and save some dough for your future.
- Create a fund for emergencies.Everyone like to believe that bad things happen to other people, but the truth is, bad things happen to everyone!No matter what you can afford, be it $5, $10, $20 or 10% every paycheck and set it aside in case something happens such as; you or your spouse loses a job, there is a serious injury or illness in the family, or the family car breaks down and needs repairs.By setting aside whatever you can afford per paycheck, you will eventually have a little nest egg for if something goes wrong.Some people say you need to have an emergency fund that will get you through 3 months of unemployment; others say $1,000 is a good emergency fund.Keeping adding to it paycheck by paycheck and hope you won’t ever have to use it.
- Budgeting always seems so easy until you try!Sticking to a straight forward and simple budget will help you meet all of your financial goals.Think of a budget as the foundation for your financial success.
- Pay debts down and if you can consolidate them in order to do that faster.If you are paying creditor A $200 a month and creditor B $50 a month, once creditor A is paid off begin paying the $200 plus the $50 on creditor B’s debt.This will help you to pay it off sooner.Also, creditors do not want you to know, but if you call, there are ways for them to lower your interest rate, settle for a lower amount, and make special payment arrangements.
- Open a Roth IRA.Research IRAs and investment strategies and then invest money that you don’t need right now (not your emergency fund or grocery money etc.) This money will be tied up in this IRA for a long time. And for the IRA beginner there are a lot of low risk options until one becomes more familiar with investing.
Before you can do any of the above there is one thing you must do.You must reprogram your brain by learning about bad spending habits, isolating your own and changing them.IF you do not understand consumerism, money and how it works, you will never be able to successfully complete the above steps for successful money management.