The New Year is a great time for a financial tune-up and it doesn’t have to be as daunting as many think. Rachel Cruze, personal finance expert and New York Times best-selling author of Smart Money Smart Kids, provides practical tips to help tackle your financial goals.
- Make a Written Budget
- Make budgeting a priority.
- Spend every dollar on paper before the month begins.
- Give yourself 90 days to get it right.
- Build an Emergency Fund
- Start with $1,000.
- Increase to 3-6 months of expenses once debt free.
- Sell stuff you don’t need.
- Get a second job or work extra hours.
- Look at your budget and see where you can cut.
- Live Within Your Means
- If you can’t pay cash, don’t buy it.
- It’s not worth going into debt for the latest “it” item.
- Make Paying Off Debt a Priority
- Cut up and close any credit cards you still use.
- Use the debt snowball to pay off debt.
- List your debts from smallest to largest and pay off in that order.