New Year’s Tips for a Financially Healthy You!

You’ve probably heard the phrase, “New Year, New You!” Why not apply that to your financial health as well? What better time to evaluate your finances and spending habits than at the New Year! With that in mind, we have several tips to help you along with your financial reboot.

Tip #1: Start a budget!

We say this constantly here at FFL, but because we believe it’s that important! The budget is your first step in financial success. It creates a plan for your money. In writing your budget for 2020, think about what went well last year for you financially, and how to repeat those results. Then think about some failures from the past year, and what you can do to prevent them.

For example, Christmas can be an expensive endeavor. Between holiday parties, gift exchanges, and gifts for loved ones, the spending really adds up. Most Americans find themselves back in credit card debt by the time January rolls around. Instead of racking up more debt in the holidays, create a plan at the beginning of the year. Budget out how much you anticipate spending, and save it throughout the year. #noholidaydebt2020

Tip #2: Watch for wealth extraction!

When evaluating your spending for 2020, the next tip is to watch for spending traps, that we like to call “wealth extraction”. Wealth extraction is anything which is superfluous, but consumers buy it. For example, a “micro-usb fan” – a cell phone accessory that uses your phone battery to run a small fan. This seems like a very cool gadget, placed right near the register. But when thinking through it, it’s not at all necessary.

Be aware of these types of spending traps, and don’t fall victim to them this year.

Tip #3: Stop eating out

According to TheSimpleDollar.com, the average American eats out 4-5 times per week, which equates to about 18 times per month. At an average of $8 per meal, that’s a total of about $150 per month. Instead of eating out, for $30-$40 a week, stay in and cook. Buy groceries and meal prep. This is one of the easiest ways to save money, and may even help in the waistband too.

There you have it! Our top 3 tips for revamping your financial health in 2020. What is your favorite tip? What else have you tried that we did not mention here? Let us know in the comments below.