Millions of people are eyeing a fresh financial start as the new year nears.
With 67% of Americans planning to make a financial resolution in 2024, paying off debt is the most common goal. Despite an air of optimism, resolutions like this are quickly put on the backburner without a plan driving them forward.
“With rising inflation, increasing interest rates and economic uncertainty looming, paying off debt should be a top priority,” said Amy Maliga, financial educator with Take Charge America, a nonprofit credit counseling and debt management agency. “While these factors create stress, it’s possible to take control of your finances and set up a more secure and confident future.”
Maliga shares seven tips for consumers to achieve their financial goals:
- Set intentions: Create realistic short- and long-term saving and budgeting goals that hold you accountable and keep you motivated to achieve them. There are a variety of calculators available online for developing budgets or estimating your average spending habits.
- Start with little things: Evaluate spending habits and current subscriptions while embracing minimalism and decluttering. Sell items you no longer need to free up your living space and earn extra money.
- Consider skill trading: Explore bartering or trading services with others to reduce your overall expenses. Are you highly organized or great with kids? Consider trading childcare or home organizing with a service you need, such as lawn maintenance or airport travel.
- Join the gig economy: In today’s on-demand world, it’s easy to turn your free time into money-making time. Get extra cash to pay off debt or reach a savings goal through ride shares, food delivery, home maintenance, tutoring and much more.
- Automate your financial life: Identify opportunities to save or pay off debt automatically, so you don’t have to give it a second thought. Consider scheduling two credit card payments monthly or updating your direct deposit so a portion of your paycheck is automatically diverted into savings.
- Get an accountability partner: Enlist the help of a close friend, spouse or another loved one to reach your financial goals. You’re more likely to be successful if you share your habits and progress with someone you trust.
- Seek debt relief options: If you are deep in debt, seek relief options such as nonprofit credit counseling or debt management to help reclaim your financial independence.
Find additional financial resources here.
