Get Your Personal Finances on Track in 2019 | St. Johns Bank
It’s a brand-new year, which means a fresh start for reaching our financial goals. How do you plan on getting started this month?
Our team at St. Johns Bank wants to offer you some ideas on how you can get your finances on a good track in 2019. Read on as we take a look.
Tip 1: Create a Budget—and Stick to It
Establishing a household budget alone is not enough. You need to create a budget and then stick to it. But also remember, a budget is a living document, meaning it can evolve and change as your needs do.
When creating a budget, make sure that every dollar is accounted for. Create categories that include all your expenses, including utilities, your mortgage/rent, food, and entertainment.
Tip 2: Start Fixing Your Credit Score
It doesn’t matter if you plan on making a big purchase in the new year or not. You still want to have a good credit score at all times.
If your credit score is not where you would like it to be, now is the perfect time to work on improving it. You can do that in many ways, including:
- Paying bills on time
- Paying off all debt
- Reviewing your credit report to ensure there are no mistakes hurting your score
- Not opening new credit lines
- Not closing credit lines that have been paid off
Tip 3: Pay Extra to Pay Off Debt ASAP
Carrying debt into the new year is like carrying baggage into a new relationship. How is 2019 going to be successful and a fresh start when you’re still dealing with mistakes of 2018?
Start cleaning up your debt by paying it off as soon as possible, which might mean cutting back on monthly expenses in order to pay extra toward your debt each month.
The best strategy is to choose a specific debt, either the one with the highest interest rate or the one with the lowest balance, and pay extra on it each month until it’s paid off. Pay the minimum on the rest of your debts as you do so. Once the first account is paid off, you can put that money toward a second debt and continue until it’s paid off.
Are you ready to hit the ground running toward your financial goals for 2019? Visit St. Johns Bank today to learn how we can help!