With it being the first month of a new year, we know that many members of our apartment community are thinking about renewed resolutions. If you’re striving to gain a better hold of your finances this year, then this post is for you. Today, Vista del Rey Blog is sharing a few simple financial tips for you to starting practicing right away. While there are steps you can take beyond these, we’re giving you the first three tips toward a financial abundant future from SmartDollar. Start practicing them today in your Tacoma, WA apartment!
Get On a Budget
If you aren’t yet on a budget, the first step towards financial stability is getting on one! We could write multiple blog posts on this topic alone, but that’s not our what we’re aiming for today. To keep it simple, budgeting requires that you know your spendable income each month, that you are aware of how you typically spend that income, that you have goals in terms of where your money will go each month ranked from most important need to simplest want, and that you are ready to make adjustments when necessary. For more specific budgeting tips, a simple google search will provide you with a plethora of options and methods to choose from.
Build Emergency Savings
While you might be consciously saving money each month for a new car or an upcoming expense that you’re anticipating, it’s crucial to build an emergency savings for unanticipated expenses as well. SmartDollar suggest that your basic emergency savings fund should equal $1,000 so that any unexpected doctor’s visit or car repair won’t send you plunging into debt. It might take you a few months to build up $1,000, but you’ll be glad that you did it next time you truly need that money. Remember to replenish your fund when you need to use some of it!
Pay Off Debt
Chances are, between student loans, car payments, and credit cards, you have a few sources of consumer debt. Once you’re on a budget and you have an emergency savings, the next big step is to pay all of it off. SmartDollar suggests listing all of your debts from most to least expensive, and then paying the minimum payment each month on each of those debts. If you have leftover money that you’d like to be spending on debt reduction, then put it towards paying off your smallest debt. Use this debt snowball calculator to see how it works. While this process may feel counterintuitive, it works! Paying off any debts you have in full will make your load that much lighter. Repeat this process until all of your debts are gone!
Thanks for reading! May your 2019 be a year of success and financial stability.