Credit card debt can accrue and savings deplete quickly as people enjoyed the holidays. But with an action plan, short-term debt doesn’t need to saddle money aspirations in this year.
Manuel Salazar, chief executive director of the nonprofit Take Charge America, shares six tactics on how to refresh your finances.
• Create or refine your budget: A well-crafted budget is the cornerstone of financial stability. Review your spending habits and identify areas where you can cut back. You can find free budget worksheets online and through a mobile app.
• Conduct a subscription audit: A few dollars toward a slew of unneeded subscriptions can quickly bust your budget. Take a closer look at your subscriptions and cancel any unnecessary ones. Every dollar saved can be redirected toward climbing out of a short-term hole.
• Determine the best debt payoff strategy: If you’ve accumulated debt, consider consulting a credit counselor to develop a budget and personalized action plan to eliminate it. Free and confidential credit counseling sessions are available through nonprofit agencies like Take Charge America.
• Automate to meet financial goals: Automating finances can improve financial discipline. You can schedule transfers from direct deposit into your savings account and set up recurring bill payments. These auto transfers make for better budgeting, knowing a portion of your money is earmarked for savings. They also save you the hassle of remembering due dates, which prevent unnecessary late fees.
• Fuel your savings: It is recommended to have three to six months of savings stashed away in case of emergencies. While hard to achieve, consider using work bonuses and tax refunds while adjusting your budget to boost your savings.
• Enlist help: An accountability partner can ensure you stick to your budget. Choose someone you trust – a friend, partner or family member – and be honest about your progress.
For additional financial resources, visit Take Charge America’s Budget Tools. Learn more at takechargeamerica.org or call 888-822-9193.