Taking Care of Your Finances in the New Year

This is the second installment for taking care of your finances for the new year, if you have not read part one I suggest you do so as it holds valuable information that can help you begin setting guidelines to healthy finances for the new year.

Taking Care of your Finances in the New Year: Savings

We all know that a savings account is a great idea, but there is more than meets the eye. After making a list and getting rid of the expenses you do not need and can live without, setting aside the money saved can be tricky if you don't use common sense and a little strategy.

1. The lump some you save every month should be divided. 1/3 should go into a "shopping" allotment...do not use your credit cards for your frivolous spending habits! The point is to use the extra bit of cash you allow for spending. This will help you lower your credit card debts faster which gives you more 'good' credit points to add to your score and you will stop digging such a deep financial hole.

2. 1/3 should go into a standard savings account at the bank of your choice- there are free accounts available. This could be used in case you can not cover an unexpected bill or other major financial issue. It's amazing how fast it all adds up. But remember not to use it until absolutely necessary.

3. 1/3 should go toward an "Emergency Fund". By this I mean for example: your child gets into trouble and needs cash fast, something happens to/in your home and you need to stay elsewhere, or a situation arises where you need to go spend time with family-- this cash can come in handy for travel expenses...these are only a few of the most common issues that we face every year.

By dividing your savings into these important portions you can boost your finances on to a whole new and secure platform. It is always better to have the money and not need it than to need it and not have it.

Taking Care of your Finances in the New Year: Anticipate

There are always expenses we can anticipate. For instance, if we have a bill that isn't due but every 3-6 months we should be prepared for this. Vacation time is another expense that we should prepare for...after all, it wouldn't be a vacation if you were worried about your finances the entire time, would it?

Taking Care of your Finances in the New Year: Refinance!

If you are buying your home/ car and are making payments to your finance company then you definitely need to look into refinancing. There are so many great companies who offer some spectacular rates. It is up to you to take advantage of it. This act alone can save you hundreds of dollars a month. When you finally escape from the pressure of high payments that are squeezing your finances dry and/or the balloon payments every so often that you are stuck with, you can find how easily you can breathe and how enjoyable organizing your finances can actually be.

Taking Care of your Finances in the New Year: In Closing

The most important thing to remember is that you are in charge of your finances. Do not let them control your life. The money you earn should make you happy, not frustrated. If you keep your finances in check and follow these simple guidelines you can live the year with ease and comfort.