Home Chad Van Horn 5 Ways to Improve Your Financial Well-Being This Year

5 Ways to Improve Your Financial Well-Being This Year

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Improving financial well-being is one of the most popular and common goals among Americans for the new year. As January begins, we often turn our thoughts to a better financial future – and make plans for how to get there.

If you are among those who are hoping to make smarter money moves this year, you will need a plan of action. Here, we will discuss five easy ways to get started improving your financial well-being in 2023 – and enjoy lasting results for years to come!

Get a Fresh Start

A new year is a great time for a fresh start. This can mean eating better and exercising, or changing unhealthy habits. It can also mean making better financial decisions and planning for a brighter financial future.

For some people, it is difficult to make these kinds of future plans when struggling with tremendous debt. Debt can make it hard to do anything more than make minimum payments and keep everyday expenses covered. With this in mind, it might be best to give yourself the fresh start you are craving for the new year by discussing bankruptcy with your local Florida bankruptcy attorney.

Take a Financial Literacy Course

Those that find things like balancing spending and saving or managing debt difficult can benefit from financial counseling and education. These courses are often a requirement as part of bankruptcy proceedings. However, you may also be able to enroll in one of these beneficial courses without going through bankruptcy.

Financial education is a great way to improve your understanding of how spending, saving, and other aspects of money management work. It can arm you with the knowledge necessary to make better choices moving forward. This education can also help you better understand the risks associated with managing money or making purchases online, as well as how to mitigate those risks.

If you would prefer to study on your own time, there are plenty of ways to do so. There are online literacy courses available, as well as books and other materials that you can buy or rent. This way, you can study and improve your financial literacy without ever having to attend an in-person class.

Still, it is important to seek professional advice. Plenty of people give financial advice online, but someone with both education and experience should offer you guidance for the best possible result.

Reexamine Your Budget

It goes without saying that financial well-being requires planning and adherence to a solid budget. Many people set a budget but fail to stick to it, or do not know how to create a manageable budget at all. Taking a fresh look at your family’s budget at the beginning of each year is a great way to get a better handle on your finances.

Cutting expenses can be difficult. However, it is the best and most effective way to improve your finances. Consider this: You are not likely to bring in significantly more money – at least not without a major employment change, promotion, or other events. Therefore, making better use of the money you are currently making or receiving is the best way to improve your finances.

Slimming down your spending means more money to pay bills, reduce outstanding debt, save for the future, and more. The only way you can set this money aside, though, is to know where you can shave it from your regular budget.

Take a month or so to watch your budget carefully and see where your money goes. This will help you make plans for how to spend in the future, both on necessities and things that are not necessary – and can be cut from your budget.

Check and Improve Your Credit Score

Do you know your credit score? What about the items currently working against you on your credit report? These are important factors in your overall financial well-being. They can also be changed with some work.

The first step in making positive changes to your credit is knowing what needs changing. This includes checking your credit score, as well as carefully examining your credit report. Many items can be disputed if you contact the credit bureau and the reporting creditor. But you cannot make these adjustments unless you know what is on your credit report. Begin with a thorough examination and improve your credit score in the coming year.

Consolidate and Pay Down Debt

Many people are living with a lot of debt. Whether this is student loan debt, credit cards that have gotten hard to pay down, or medical debt that is out of hand. Whatever type of debt you are dealing with, working toward paying it down is a great way to improve your financial well-being.

The first step may be consolidating that debt into fewer monthly payments. There are many ways to do this, but they are not all equally advantageous. If you are interested in consolidating your debt, your best course of action is to speak to a bankruptcy attorney or other legal professional first. This way, you can examine all of your options and find the choice that is right for you.

 

This article originally appeared here and was republished with permission.

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