Welcome to a brand new year, full of endless possibilities and opportunities for personal growth. As we embark on this journey, it’s important to not only focus on our physical and mental well-being but also on our financial fitness. Let’s explore how you can achieve a “New Year, New You” by taking control of your finances.
One of the first steps towards financial fitness is evaluating whether you have “enough” – enough savings, enough income and enough financial security. It’s time to take a hard look at your current financial situation and make any necessary adjustments. This might involve reworking your spending plan, cutting unnecessary expenses, selling unused items around your home, finding ways to increase your income or starting a side hustle.
If you find yourself burdened with debt, now is the perfect time to become a “debt buster.” Take proactive steps to pay off outstanding debts by using Dave Ramsey’s debt snowball method. This is a debt-reduction strategy, where you pay off debt in order of smallest balance to largest balance (regardless of interest rates), gaining momentum as you pay off each balance. When the smallest debt is paid in full, you roll the minimum payment you were making on that debt into the next-smallest debt payment. Ideally, you would follow this process until all debts are paid off in full. Whether it’s credit card debt or personal loans, freeing yourself from the shackles of debt will provide you with greater peace of mind and financial freedom.
In addition to eliminating debt, growing your savings should also be a priority in the new year. Consider setting up automatic transfers from your pay into a dedicated savings account. By consistently contributing even small (tiny) amounts each month, you’ll be surprised at how quickly your savings can grow over time. If you’re already putting aside savings regularly, perhaps try increasing the figure by $2, $5 or even $10 per cycle and watch how much faster your savings will grow!
So as we embrace this fresh start in the new year, let’s make a commitment to achieving financial fitness. By focusing on having “enough,” reworking our finances when necessary, becoming debt busters and growing our savings diligently – we can truly transform ourselves into financially empowered individuals ready to take on any challenge that comes our way.