The new year is here and I’m sure you’re ready to get started on your resolutions. Typically people are focusing on their weight, especially after two holidays of eating good food. I know I could lose a few pounds after this holiday break. More importantly, some are focusing their goals on their finances and I applaud those people. A new year is a great time to look over your finances and see where you can improve. You might even start a nice budget to rock this new year!
If you’re in debt, this could be the year you get out of it. You might not be able to pay it all off, but set a goal to pay off 10%, 20%, or more. Do what is reasonable for you and your situation, but create a goal to kill your debt in the new year.
If you’re on a savings kick (like me), then see what you can do in order to save more this upcoming year. I’ve always had a goal to get to 50% saving rate, but I’m not sure how I’m going to get there. No matter what, saving money is extremely important. It’s hard to survive if you’re not saving any money. Trust me, I used to be in over $75,000 of debt and I didn’t save a dime. Luckily I paid it off and saved over time. I’m now a saver who loves it. Join the club this year!
Ever since I started this blog, I gathered some of the best personal finance bloggers together at the end of the year to share some awesome personal finance tips with you. Some have been in debt. Others invest like champions, and some grow their wealth like the best of them. I followed many of these bloggers when I was in debt and looking for tips to get out.
Today, I’m sharing 39 tips from other personal finance bloggers to help you get in the right mindset for the new year. These tips will revolve around a few topics I hold near and dear. We will focus on credit, debt, investing, making money, saving money, and wealth management. There are some tips which don’t fit in these categories, so I also created an “other” category as the tips are great and can help you.
My Financial Tip
Before we get to the other tips, I wanted to share my own, which is actually from my father. When I quit my job earlier this year to run my WordPress support company and this blog, this is what he told me to get me to take the leap.
That little phrase was powerful and got right to the point. My father was the one who said it to me in hopes to push me over the fence when I couldn’t do it myself. It helped me understand that I could do this. The people we work for all started their businesses, so why can’t I? Yes, it’s scary, but it can also be very worth it. If you’re on the fence in the upcoming year about going out on your own, I hope this little tip helps you get onto the side of the fence which benefits you. Do you want to own your business or do you just want to work for someone? Answer this question before you take the leap. Trust me, it helps!
One thing I’ve learned over the years is how important credit can be to your finances. While some thing having a good credit score and report is only applicable when buying something, that is no longer the case. Landlords can look at your credit, so can potential employers. You might not be able to get a cell phone contract and much more with poor credit. Yes, having a good credit score is very helpful in the long run. If you need to get a loan, having a good score will ensure you pay the cheapest rate over time. You can get low rates on car loans, home loans, and much more.
Your credit score/report is very important and something you should follow. Beyond your credit profile, these tips will talk about credit cards. Yes, I used to have credit card debt, but I use my credit cards for every purchase. I pay them off each month and enjoy the rewards. I’ve traveled for free with credit cards. It works, but only if you’re responsible!
As noted, I clawed my way out of $75,000 of debt. There was more than $50,000 of credit card debt alone, so when I talk about debt, it’s very personal. I know what it’s like to be in debt and how i affects you emotionally. Trust me, debt sucks the big one!
If you’re looking to fight debt, please check out some of the articles I have around the topic. These can help you understand more about your situation and how you react to debt. Don’t be like me and turn a blind eye to it. It only makes the problem worse. I only woke up after I realized my minimum monthly payments were as much as my mortgage. That was eye opening for me. It hurt, but it was the wake up call I needed to make a change. Hopefully one of these tips can be your wake up call.
For years, I only invested in my 401(k) through my employer. I didn’t know much about investing and didn’t focus on it until I was out of debt. That was a huge mistake. I missed out on some good returns during the 4 years it took to pay off my debt. I’m still kicking myself to this day. It wasn’t until I got a Betterment account when I started to take investing a little more seriously. Now, I have a Betterment account, and a few accounts at other online brokerages.
Investing can be scary for some who don’t understand it, but it’s basically using the power of compound interest to your advantage. Yes, you can lose money when you invest, but the market has a good, positive return on average over the last 30 years. Focus on the long term and don’t get flustered with short term dips. Also, never put all your eggs in one basket.
Hopefully, these investing tips will help you make the decision to start investing for yourself in the new year. It’s a great time to start and you can do it with less than $250!
Those who read this blog know that I quit my job this year. I had a good job for almost nine years and I got up and left it. Why? I wanted to focus on something I built and this blog and my service business were came out of me wanting to make more money. I’m a huge fan of earning more money with side hustles and building something for yourself.
While it was scary to quit my job after so long, it was time for me to move on and try my hand at entrepreneurship. While owning a business is not for everyone, that doesn’t mean you can’t work on the side to earn more and pad your existing income. Making money can change your life as it certainly has mine. I started out small, but then tried more and more things to earn more. Yes, you can try to get a raise, but those increases are finite. I want ways to make more that have no ceiling. That’s what I like to do!
Take some time to read over our great articles on making more money. You can start earning in just one weekend. The amount you make is up to how much effort you put in. If you want to make money with blogging (like I do), then head over to my very detailed “how to start a blog” guide and get to it!
Who doesn’t want to save more money this new year? I know I do. I love seeing money flowing into my saving and investment accounts. It’s a great feeling considering back in 2012, the money was still flowing out of my accounts into the banks hands for my credit card repayments.
I’m a saving addict and I think it’s a good thing. No, I’m not a cheapskate, but I do appreciate how I use my money more than I ever have before. Ever since I’ve jumped into blogging, I’ve learned about saving methods like using a savings bucket system. That was cool, but what changed my savings was when I found Digit. This is a free service that will save for you based on your spending habits. It’s awesome and I recommend it to anyone who wants to save more, but aren’t sure how. Try it out, it’s free!
Saving money isn’t just about putting money in your bank account, but also finding ways to reduce your expenses. I’ve switched away from Verizon in order to save. I cancelled cable years ago and haven’t looked back. These are simple things you can do in order to save money. Look over some of our articles on more ways to save money each and every day. You might be stunned on how much you’re leaving on the table!
This is definitely an area where I need to do better and I’m going to use the new year to set up goals to do better here. Wealth management is so important and encompasses more than just money. It includes all of your assets as well.
If you’re not sure how to handle your wealth, then it might be good to check out a financial advisor to assist you. Look at the XY Planning Network to find a fee-only advisor to help. I’d also suggest you set up a free Personal Capital account in order to get a bigger picture of your money and financial situation. I’m a huge fan and started using Personal Capital years ago. It’s my go-to tool when looking over all of my finances and seeing how my wealth is doing. The best part is it’s completely free to use.
Look over these tips and start working on your overall wealth management as I plan to do in the new year! Let’s do this together.
Not every financial tip I got fit into the the categories above, but instead of just dropping them, I wanted to place them in an encompassing “other” category. These aren’t specific to the other categories, but they are still important for you to read over. There is even a great tip in there about not loaning your parents money. It’s quick and painless, but makes a good point. Unless you’re very careful, loaning money to family members can get nasty really quick!
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