7 financial goals you can reach by the end of the year
REUTERS/Arnd Wiegmann
There’s no need to wait for a new year to make a resolution to improve your finances. Sure, most of 2016 is now behind us, but in the time between now and New Year’s Day you can make a lot of progress toward your goals.
Here are a few things you can tackle in a matter of months.
1. Make a budget
If you’re not keeping track of where your money goes and you’re also having a hard time doing things like getting out of debt or saving money, it’s probably time to get serious about budgeting.
It can be as simple or as detailed as you like, but tracking your spending, figuring out your fixed expenses and planning what to do with any leftover money can make it a lot easier to make day-to-day financial decisions.
2. Build credit
Whether you’re starting with no credit history or you’re trying to bounce back from past credit problems, building credit takes at least 6 months to get going. (Six months of recent credit history is the minimum amount of activity needed to generate a credit score, in most cases.)
One of the easiest ways to build credit is to get and use a secured credit card, which requires a cash deposit that serves as the card’s credit limit. (We’ve put together an expert guide to secured credit cards here.)
You could also look into getting a credit-builder loan or work with an alternative credit program that helps you demonstrate creditworthiness with non-credit payment history, like rent or utility bills.
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3. Cut your expenses
If spending less money were easy, a lot of people wouldn’t be in debt. We know it’s not easy. But as difficult as it can be to reduce how much money you spend, it really helps to re-evaluate your habits from time to time as your needs change.
For example, if you got a gym membership two years ago but have since shifted your exercise preferences to things you can do outside or at home, cutting it off could be an easy way to put more wiggle room in your budget. The same goes for subscriptions.
You may also want to shop around for cheaper alternatives to fixed expenses, like a better rate on car insurance or consolidating credit card debt with a balance transfer credit card or personal loan with a lower interest rate. If you’re not looking to change insurers or service providers, it doesn’t hurt to ask them about ways to lower your bills.
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