2020 was a year like no other. If you found yourself in a tough financial situation due to job loss or sickness, you are not alone.
The new year is a great time to evaluate your finances and make small changes that can add up. Here are a few suggestions to get you started.
- Save. Even starting with a small amount will add up over time if you are consistent. Eliminate the extra step by having a portion of your paycheck deposited in a separate savings account every pay period.
- Cancel Subscriptions. Check your bank account and credit card statements to find monthly fees charged for subscriptions you may have forgotten about. Those no-cost limited trials that suddenly expire and start charging you monthly are a drain on your accounts. Thinking about cancelling subscriptions you rarely use or don’t really need can save you a few dollars every month.
- Consolidate or Pay Down High Interest Accounts First. If you carry balances on several credit cards, try paying down the highest interest rate cards first, while paying the minimum on lower rate cards. Once one is paid off, focus on the next highest, etc.
- Save for Retirement. If you wait until the end of the year to make your IRA contributions, it can be hard to come up with the maximum contribution amount all at once. Consider setting up smaller automatic monthly contributions.
- Create or Update Your Budget. Creating a detailed budget can help you see where your money goes each month and help you spot areas that you can cut back.
Honorine M. Campisi, CPA