5 Ways to Start the New Year on the Right Financial Track

January 2, 2020

January is a great time to start something new. When it comes to your finances, the New Year also is a good time to set goals and strategies. Here are five ways to help you start 2020 on the right financial track:

1. Set a budget
First, update your expenses and income so you know your starting point. Then, set goals such as reducing your debt or increasing your savings — and attach a dollar amount. Finally, create a plan to achieve those goals.

2. Plan for the unexpected
Include some wiggle room in your budget to help reduce the need to take a loan out to cover unexpected expenses. A good way to cover those costs is with an emergency fund, which you can start this month. Put a small amount of money, such as $25, in a separate savings account then add to it monthly.

3. Review automatic payments
This is a good time to review any automatic payments and subscriptions. Some expenses, such as entertainment streaming services, a gym membership, or magazine subscriptions, may no longer fit into your budget, lifestyle, or priorities. An annual review of these payments can be part of your general New Year cleanup.

4. Check your withholdings
After the tax changes in 2018, take a look at your 2019 taxes and see if you need more or less money withheld this year.

5. Shop for discounts
January is a good time to buy products on deep discount. For example, if one of your personal goals for 2020 is to improve your fitness level, look for deals on exercise equipment, or a gym membership. You can also stock up on bedding, winter clothing, and holiday décor as stores clear out inventory after the holiday shopping season.

MSUFCU offers many products and services to help you monitor your accounts. In addition, the Credit Union provides financial education presentations and knowledgeable employees to help you become financially successful. Stop by any one of our 13 branches in Greater Lansing or visit msufcu.org for more information.


Tags: Money Management, Budgeting, Tips and Tricks