Personal FinancePeopleImages.com – Yuri A / Shutterstock.comRich DupreyThis post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive
compensation for actions taken through them.New years are a time for making resolutions. While diets often top our list, getting your finances into shape should be a priority, too. Whether it is paying down debt, putting away more for retirement, or just committing to being more intentional about your spending, there is no better time than the beginning of the year to kick-start your financial health with a thorough detox. Below are some ideas on how to cleanse your financial life in January to set a positive tone for the rest of the year and beyond.24/7 Wall St. Key Points:Gaining control of your finances is one of the most important things you can do to improve yourself and performing a financial detox in January is an excellent time to start.
Reviewing all of your sources of income and expenses is just the first step to take in what should become a lifelong process.
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7 steps to financial control1. Gather your financial documents. Gather together all of your bank statements, credit card bills, investment accounts, and last year’s tax returns, then use this to get a clear picture of where you stand financially.2. Review your expenses. List all of your subscriptions from movie and audio streaming services to gym memberships, and cancel those you rarely use or don’t need. This can save you hundreds annually. Similarly, track your small expenses like your daily coffee or app purchases. Use a budgeting app or even a simple notebook to track these for a month to see where your money goes.3. Renegotiate bills and rates. Contact your cable or internet service provider, phone, credit cards, and insurance companies and ask them to lower your rates. Often, there’s room for negotiation, especially if you suggest you are considering switching companies. If you have loans, see if you can refinance for a lower rate or consolidate multiple debts into one with a lower interest rate. Maybe change the due date on a bill to better align with when you get paid.4. Debt gut check. List all of your credit cards, auto loans, and student loans, then sort them by interest rate, highest to lowest. Employ the “snowball” or “avalanche” method to pay them off. The snowball method says to pay off the smallest debts first for quick wins while the avalanche method recommends paying down the highest interest rate debts first to save the most money on interest.5. Set up automated savings. Decide on a savings goal, then set up automatic transfers to a savings account right after your paycheck hits. This ensures you pay yourself first and you save before you spend. Equally important is establishing an emergency fund to put away at least three to six months’ worth of living expenses. 6. Budget for the year. They say
Mer. Gen 8th, 2025
