As we start to approach the end of the year, many of us will be thinking about getting ready for Christmas. But, for some of us, such a joyous occasion isn’t at the forefront of our minds. Instead, money worries can take centre stage. Especially when it means having less money available because of the Christmas period.
When making a new year resolution, one of them should be to sort out any financial problems. Here are some handy tips to help you get your finances sorted out for the new year:
The first and most important thing to do is work out where all your hard-earned cash is going. It might surprise you to learn that many people don’t have a grip on their outgoings. You can use a pen and paper if you wish, or do it the 21st-century way with a spreadsheet on a computer. It’s also worth writing down your income, so you know what the difference is between the two amounts.
Cut back on nonessential items
Next, you should purge nonessential items from your outgoings. Examples may include:
- Unused add-ons to mobile phone or satellite TV packages;
- Entertainment subscriptions, such as for streaming music;
- Gym membership.
The amount you save may not add up to much. But, it helps when combined with other cost-saving measures.
Stop using your credit cards
The more you use your cards, the higher your repayments are. Also, you’ll have to pay more interest too. If you only make the minimum payments, it could take you more than a lifetime to pay them off. Cut up your cards and just pay them off. It’s one of the first steps you can take towards sorting out your finances for the new year.
Get a debt consolidation loan
If you have various types of debt, there is a clever way to cut the cost of paying them each month. All you need to do is get a debt consolidation loan. You then end up paying just one debt (the loan) instead of many debts. The bonus? You won’t have to pay so much interest on your debt, as you’ll only have one loan to pay!
Sell things you don’t need
You might not think it, but your home will be an absolute goldmine! Did you know that all that stuff you seldom use is valuable? For example, old electronics, DVDs and even books can get sold. Some companies can buy your old books and DVDs and even pay for your shipping costs too. For everything else, you can always use Internet auction and classifieds sites!
Don’t get any more debt
Aside from a consolidation loan, it’s crucial that you stop borrowing money. You’ll never be able to clear your debts if you keep increasing how much you owe.
Draw up a plan of action
Now that you know what you can do for the new year, it’s time to prepare a plan of action. That way, you know what you have to do each month. You can also create a debt-free calendar so that you have achievable goals to motivate you.
DISCLAIMER: These articles are for information only and should not be construed as advice. You should always seek advice prior to taking any action.