How to Clean Up Your Finances in the New Year

Do you want to make a New Year’s resolution that is going to spark positive change in your life? If so, you should consider resolving to clean up your finances in the earliest months of 2020. By taking on this challenge, you could very well find yourself debt-free and sitting on a small fortune come this time next year.

To find out what you need to do to clean up your finances in the new year, be sure to read on.

Pay Off Your Christmas Debt

If the festive season leaves you with a lot of Christmas debt to clear, you should get to work right away in clearing out. If you allow this plight to hang over your head for too long, you will make the challenge of cleaning up your finances even more difficult than it already is.

If you’re to pay off the debts that you incurred over the holiday season, you must:

  • Know how much money you owe, as well as who you owe it to
  • Assess how much excess cash you have at your disposal at the end of each month and use this information to set up a monthly savings plan
  • Budget your debt repayments for the first quarter of the year

Seek and Accept Financial Assistance

You might be cleaning up your own personal finances, but that doesn’t mean that you can’t seek and subsequently accept assistance when it comes to paying back the money that you owe. If you have urgent repayment deadlines fast approaching, there’s nothing wrong with asking for help. Whether this entails you asking a loved one to lend you some cash or it means asking a professional provider of online loans to borrow you a lump sum, just know that reaching out for assistance is not a sign of weakness. So long as you are able to pay back the full amount of the money that you borrow — which means not borrowing more than you know you are realistically going to afford to pay back — there’s no reason why you can’t accept financial assistance whenever it is offered to you.

Save Some Cash

The most productive thing that you can do to clean up your finances is to simply change up your spending habits and save some cash. Bank Of America have listed eight things that you must do if you want to save a bit of money in the new year:

  • Record your expenses
  • Budget for savings
  • Cut your spending (cancel subscriptions, stop eating out so often, etc.)
  • Set savings goals
  • Decide on your priorities
  • Pick the right saving and banking tools (take things such as interest and tax efficiency into account)
  • Automate the process of saving money on your web-based banking platform
  • Keep track of your savings and watch them grow

If you want to set yourself a worthwhile New Year’s resolution, let it be to clean up your finances in 2020. Should you succeed, there’s no telling how much money you will have in your bank account come this time next year.