It’s the season for resolutions as a new year arrives, and although lots of us set goals for our health, it’s also a great time to review your prosperity and make plans for new financial goals. Perhaps you got into bad habits last year, or maybe the other things you want to achieve in 2018 need to be financed – either way, it’s time to get smart with your money. Here’s how…
Snowball Any Debt
It’s not just seasonal-sounding but also solid advice. Your first financial goal should be to pay down any unsecured lending you have, especially credit cards. Why? Well, they aren’t a smart form of borrowing as most tend to have extremely high Annual Percentage Rates (APRs) and having too many accounts open can also harm your credit score and prevent you from being offered the best deals when you do need to borrow.
Getting rid of them frees up cash flow spent on servicing the debt to put towards savings, too. First of all, arrange any cards by order of highest to lowest APR- that’s the order you want to pay them off. Then, see if you can find a card with an interest- free period to transfer all other card debt on.
You must be able to repay the total balance owed before the interest-free period is over, so work out what monthly amount you will need to do this. It may mean a few months of pain, but you’ll be so much freer in the end. A company like Debtsettlement.co can help if you need it.
Clean Up Your Credit Score
When was the last time you took a look at your credit score? There’s no excuse now, with free online tools that will let you check your credit rating. Taking steps to improve the situation is important.
First of all, find out if you have any associates on file- these are people you may have shared financial arrangements within the past such as a housemate or ex-spouse. Their credit can affect yours, so if you no longer have dealings with them, apply for a notice of dissociation to be added to your file.
Next, close any dormant credit streams that still appear on your file. Thirdly, if you need to build up a solid rating, choose a credit builder card and make sure that you meet the monthly repayment in full each month.
Spread Out Your Savings
If you’re running one savings account, then that is great, but to really make your money work hard, you need to be diversifying your investments. Spread your portfolio between steady low-rate returns, such as an ISA account and lower amounts in schemes with a higher risk but a higher yield, such as a day trading platform.
If you struggle to save, make it automated with an app that saves and invests for you. You can even set it to round up your daily transactions and set the change into savings. This, combined with a fixed monthly contribution, can quickly add up and Male a difference to your savings goals.
You may have missed the boat with Bitcoin but there’s still lots of high growth schemes to invest in if you have a little capital available. A qualified financial advisor can help you to work out the best options for what you’re trying to achieve.