New Year is the best time for resolutions. For 2013, many people still commit to improve their finances, which they may have already aimed years ago. Don’t forget to make the commitment to abide by your resolutions not just in January but throughout the year. Here are five ideal goals that can improve your financial condition this year.
1. Eliminate all your debts.
After the Christmas holiday season, you may expect your credit card bills to reflect piled debts. Do not ignore those bills. Instead, try to find ways to repay all your dues as soon as you possibly could. While eliminating credit card debts, why not decide to refrain from using those plastic cards at least until all balances are settled? If there are other debts from the previous months last year, you may try effective strategies like debt consolidation and balance transferring.
2. Improve your credit score.
January is a good time to review your credit history. Immediately seek correction if you find errors in reporting. If you are not satisfied with your score, it is always a good time to start improving it. You can start by paying all your dues on time and eliminating existing debts. Avoid delayed payments. To bolster your credit rating, you need to prove that you are a responsible individual when it comes to managing your finances.
3. Start saving for the future.
Save for the rainy days. It is advisable to save a specific portion of your regular income and deposit it to a special bank account. You can never tell when you would need a significant amount of money in the future. If there is an emergency and you need to spend significantly, it is better if you have savings that you can use. You would avoid the need to obtain loans. Moreover, if you plan to buy a new car or home, you should opt to save for the purchase instead of getting a car loan or home loan, which is always costly.
4. Live a frugal life.
There are many ways to save money. One of the best and most effective ways is to observe a frugal lifestyle. You do not need to live extravagantly. You may begin by reducing costs even at home. Lower your electric and water consumption, cut off unnecessary and additional phone lines, and refrain from buying unimportant grocery items. You should lessen your urge to dine out at restaurants or to drink booze with friends. If you can set a practical budget and stick to it, your financial condition would certainly be better.
5. Earn additional income.
You would surely agree that it is good to make extra money so you could boost your savings and eliminate debts more quickly. Perhaps, you could take a part-time job or open a home-based business. It is also ideal to invest your savings where the amount could grow exponentially over time without unnecessary exposure to risks. You may also volunteer to render paid overtime services at work. Grab every logical and practical opportunity to earn more dollars.
Over the last 5 years, Andrew has been an active blogger in the personal finance community offering well researched articles, tips and advice on short term loans and personal finance. When he is not writing, Andrew enjoys spending time with his family and friends.