Only a month in and you’ve broken your New Year’s financial resolutions.
We all have good intentions, and then we mess up. Chances are you’ve already broken your vows to do better money-wise and you’re not alone. But never fear, it’s not too late to get back on track with these helpful tips.
Broken vow #1: I will not live beyond my means.
What went wrong: You hit all those after-holiday sales, your credit card balances are rising and your bills are out of control.
Put the brakes on: Start by reviewing your budget over the past year to see where your money actually went, say personal finance experts. You could easily cut out up to $100 per month on unnecessary expenditures.
Broken vow #2: I will pay down my credit card debt.
Oops: You just couldn’t avoid the temptation of pulling that plastic out of your wallet. Instead of cutting your debt, your balance got even bigger.
Get plastic smart: Removing all but one low-interest credit card from your wallet, then take out a piece of paper and create four columns. List every card you owe money on, the amount, APR, and the dollar amount of the interest you pay each month just to service that debt.
Broken vow #3: I will start saving this year!
What went wrong: After paying your bills, there’s nothing left.
Get money smart: Think small. One of the biggest money blunders people make is keeping all of their dollars in one place, say consumer experts. When you don’t separate savings accounts from checking accounts, you’re more likely to dip into those funds and lose track of your goals.
Broken vow #4: I will pay more attention to my investments.
What went wrong: You have better things to do and it really doesn’t interest you.
Get money smart: Set firm dates to review your investments regularly and stick to the plan.
Broken money vow #5: I will finally get around to getting a will.
What went wrong: So many less depressing things to take care of?
Get money smart: Consider what’s at stake if you don’t have a will. The state – not you – will determine who gets what when you are gone.
Another ShopRTO Financial tip.