Happy New Year! As we enter a new year, the Allied Wellness team wants you to feel confident not only in your physical and mental health but also in your financial health. We’ve put together 5 tips to help you recover your financial health after the holidays so you can kick off the year with a plan and hopefully less stress!
Assess your current standings. Take the good, the bad, and the ugly all into consideration. You’ll want to look at (or create) your monthly budget and overall financial goals. Then jot down all debts that need to be squared away along with due dates, minimum amounts due, interest rates, etc
Pick a plan of action. Decide what payment strategy works best for you. For some, paying down the debt with the largest interest rate makes the most sense in the long run. Or maybe tackling the smallest balance first and eliminating that bill first is a better option. No matter what strategy you use, make sure to always pay on time!
Cut back where you can. This is prime time for utilizing coupons and comparison ads when stocking up on your essentials, cutting back on anything that isn’t absolutely necessary, and looking for additional savings in your fixed expenses. Can you save any money on subscriptions or reduce your phone/cable bill? You can also adopt small changes like carpooling more often, having breakfast and coffee at home, bringing lunches to work, going to free local activities instead of the movies, etc. to save even more.
Double up on payments. Using your savings from cutting back, try to double your minimum payments for the first few months of the year. If you can’t do double, add whatever you can. Extra money per payment will go directly to your principal balance which will help you pay it off that much quicker!
Save! Once you feel that have recovered and reached a comfortable position, continue using your budgeting skills and put money that used to go towards your debts into savings instead. Building 3 months emergency fund, contributing more to your 401k/ retirement plan, or even saving a little bit each month to go towards the next holidays will leave you much more prepared and less stressed about the future.
