One of the most common New Year’s resolutions is to spend less, save more, and generally handle finances more responsibly. If this is one of your yearly goals, why wait until January to start? If you start improving your finances now, you can enter the new year encouraged and financially stable. If you’re ready to start improving your family’s financial status right now, here are some ideas.
Set a Special Holiday Budget
One reason you might wait until January to take your finances seriously is the temptation to overspend on holiday gifts and experiences. However, using a credit card to buy tons of presents without budgeting for them can have consequences for months or even years in the future. Before you start buying gifts, sit down and take a realistic look at your finances, including credit card balances and income, and set a sensible budget for all your gift purchases. You’ll avoid racking up debt and you’ll feel confident in the gifts you carefully consider before purchasing.
Use a “Revolving Door” Policy for Clothing and Household Items
If you tend to buy clothing, furniture, or other household items frequently, it can be hard to set a realistic budget. Frequent shopping can also lead to keeping unused stuff in the home. Before buying a new holiday dress or winter coats for the family, sell or donate the old clothing you are replacing. Following a “one-in-one-out” policy as closely as possible helps keep your closets and garage free of clutter. Additionally, you can earn some extra cash by selling your stuff or get a tax refund for donating it.
Negotiate With Your Providers
One constant source of monthly spending is recurring subscription services such as cable television, internet service, and cell phone coverage. Most people need at least some of these things to maintain a comfortable and workable lifestyle so cutting the expenses entirely isn’t always an option. However, you may be able to reduce your monthly expenses by negotiating a better deal with your service providers. It isn’t a sure thing, but many people who take the time to talk with their service providers end up with a more favorable rate and contract.
Find the Best Deal on Insurance
Your insurance premium is another monthly expense you can try to minimize. While you can’t control some factors of your premium cost such as your age or location, you can often find more affordable insurance coverage by changing providers or buying home and auto policies at the same time. The best way to find out if your can lower your insurance costs is to contact a local insurance agent in Denver and discuss coverage options. You may also ask about different levels of coverage to see if you should update your policy terms.
While you may be tempted to simply turn a blind eye toward your finances and wait for January to start improving your spending and saving choices, it’s much better if you start to make wise financial choices now. Setting a budget for holiday spending and lowering your monthly insurance and internet expenses are great ways to improve your financial health and start the new year off with a happy bank account.