Saving money and sticking to your financial goals is always important, and possibly more vital than ever as we enter an uncertain new year.
Jean explains a good approach to staying on top of your finances is to either save more money each month or to work on paying off existing debt.
Her tips for saving money include:
- Track your spending to determine where your money is going.
- Once you figure out where you are unnecessarily spending, she says, "Get that money out of your checking account."
- Transfer extra money to a savings account -- possibly at a credit union or an online bank with a higher interest rate -- she feels if the money is out of sight, you are more likely to save it.
- Try to hold on to the money-saving life changes we have made during the pandemic -- like exercising outside instead of the gym and cooking instead of eating out -- as life returns to normal.
In order to better control your debt, Jean suggests:
- Identify and arrange your debt from the highest interest rate to the lowest.
- Work on paying off the highest interest rate debt first.
- Pay off a larger portion of the highest interest rate debt while paying the minimum payment on the rest of your debt, and then work your down your debts
- If possible, refinance or balance transfer debts to save on monthly payments.
Get more tips on finances, saving, debt, and managing your money on HerMoney.com!