We’ve all made mistakes in the past when it comes to money. And some of those mistakes, such as debt or bad credit, may still haunt us to this very day.
What’s the good news? That you can start to fix your financial blunders by following some straightforward rules.
You can use some of these rules as your 2020 New Year’s resolutions. Better yet, use them every year as a foundation. As simple as they may seem, they can set you up for financial success.
Learn More About Money
It’s never too late to start boosting your financial literacy. The more you learn about money, the better you can attract and manage it.
Think of what you’re weakest in. Do you have trouble saving? Do you find yourself buried under mounds of debt? Whatever your weakest money-related point is, start reading up on it.
As you start to understand money better, you’ll be able to make more informed decisions. And as for where to start learning, you can either pick up free books at your local library or do your research online.
Tackle Your Debt
As much as you’d love to ignore your debt, it won’t go away on its own. That’s why it’s better to tackle debt head-on so you can start chipping away at it.
This may be easier said than done if you have debt hitting you from all angles. If this is the case, consolidation may be a smart move.
When you consolidate debt, you bundle it, so you have:
- One account to manage
- One minimum payment
- One interest rate
- One repayment term
Does consolidation completely erase your debt? No, but as you can see, it simplifies the debt so that it’s not such a significant mental burden. And in the process of consolidation, you could see a lower payment and interest rate, which can help you pay it off faster.
Maximize Your Income
As you learn more about money and tackle your debt, you’ll want to increase your income. If this seems impossible, know that there are several ways to make it happen.
First, look at what you have coming in now. If you get an hourly wage at a job, you can ask for more hours to bump up your pay. Or, if you have a salaried position, you could ask for a raise.
Second, think about the skills you possess. Each could represent a nice chunk of income via a side gig, so start analyzing what you can bring to the table.
Are you good with computers? You can get plenty of gigs via sites like Upwork and Fiverr. Are you great with kids? You can find online babysitting gigs from strangers that can start supplementing your savings.
Third, look around your home. Do you have items that are collecting dust when they could be collecting cash instead? Sell your clothes, electronics, furniture, or any other things online. Then use that cash to put towards the following tip.
Set a Goal and Save for It
What is something that you’d like to save for? Is it a new car that provides reliable transportation for your job and your children’s schooling? Would you like to move to a safer neighborhood? Or do you need to start building your emergency fund for a rainy day?
Whatever the goal, put a price tag on it and divide it by 12. The number you come up with is how much you’ll need to save per month in 2020 to reach that goal.