How are you doing financially? We hope you are doing well, but with the new year almost upon us, you should take the opportunity to review your financial wellbeing. There are a number of ways you can do this, and these include the following.
1. Look at your bank statements
Look at your bank statements, and focus on both your income and expenditure. Do they match up? If you discover you have been spending more than you have coming in, you are going to suffer the consequences eventually. As the new year begins, look at ways you can make savings on your regular expenses, and if you need to grow your finances, consider other income streams to improve your financial health.
2. Check your credit score
When did you last check your credit score? If it has been a while, you really should make the effort to have another look at your credit report, scanning it for any inaccuracies. You can do this free with services such as Creditwise and Fico – check this article on Creditwise vs. Fico for comparisons – and if you notice any errors, it is in your best interest to get in touch with the relevant credit reporting company, be it Experian, Equifax, or TransUnion. Of course, there may not be any errors at all, but if your financial behavior has driven down your score, now is the time to consider how you might raise it again. There are some ideas here.
3. Review your debts
None of us is immune to debt, and there may be many reasons why you are. Your mortgage is a biggie, but you might also have credit cards, loans, and store cards adding to your debt problem. Look at each, and consider ways to manage them. There is some advice here, so do not delay attempts to deal with your debts, start to conquer them instead. Make it a goal to be debt-free by the end of this coming year, and you will be well on your way to a brighter financial future.
4. Check on your savings
How much have you managed to save? We are talking about both your regular savings (for those nicer things in life, as well as retirement) and your emergency fund (for those everyday disasters). How healthy are they? Have you successfully managed to put enough aside, or do you need to make more effort? If you have had to dip into any of your savings, you might also want to make a mental note to replenish them, as you may be lost without that extra reserve of money in your life.
5. Review your insurance policies
Are your policies still relevant to you? If your life has changed in any way, you might want to pay for more or less coverage depending on your current needs. In addition, you also want to ensure you aren’t paying over the odds for your insurance too. Before renewal time comes along, start to get those insurance quotes together, and make savings to your finances by changing your insurer if you can find a better deal.
You care for your physical wellbeing, and as the new year begins, you will probably be looking for ways to eat better and exercise more. Follow the same pattern with your financial health, using the ideas we have given you here to take better care of your financial today and financial tomorrow.
We hope you have a very happy and financially prosperous new year.
