Getting On Track to Financial Security

Yes, inflation is higher, but do you feel like you could have saved more, stuck to a budget, or spent wisely last year? Rather than beating yourself up, here are a few things you can do this month.

Make sure your budget is up to date

It can be tricky to stick to a budget, so now is the time to evaluate your spending. Consider whether you underestimated costs for necessities like electric, gas and telephone bills. If you struggle to predict expenses that vary monthly, consider signing up for a budget payment plan. This type of plan requires paying a fixed amount each month, even when usage dips. Ultimately, this enables you to keep better control over your budgeting over the course of the year – even if a few months come with an above-average bill.

You should also think about whether you are spending your income wisely during January. If you failed to meet your savings goals last year, are there some services you can cancel or modify in order to move those savings to your bank account? Can you allocate more money to your savings account with falling gas prices?

Take a look at your account terms

Pay attention to the interest rate you are paying on any outstanding loans, like a mortgage, car loan or credit card. Consider refinancing your house or car – this could be a good time to do so. Unfortunately, many creditors have been raising rates on their best customers due to the economic situation. Therefore, it’s very important that you open and read all mail from your creditors to make sure you’re not affected by this. If your rate is being bumped up, don’t close the account abruptly as this could lower your credit score significantly if there’s still money owed. The best thing to do in this case is to stop using the card and work on paying off the balance as soon as possible.

Organize your closets

As you prepare for a divine new year, you should also go through your closets and remove items that you don’t use, cannot fit, or forgot about. You can donate these items and save the receipt for your charitable contributions for the past tax year. You can also sell them on eBay or hold a spring yard sale.

Prepare for the 2022 tax season

Set aside some time this month to go through your mail and receipts and put everything you’ll need to file your 2022 taxes into one folder. To maximize savings in 2009, shop with a budget and compare prices. Your household budget will evolve over the year, so remember to adjust it as required.