You donโt even have to wait until January 1st to get a start on your financial resolutions. Here are eight best practices designed to put more jingle in your pocket:
1) Be aware of those daily purchases. A $5 coffee might not seem like a lot, but grabbing one every day before work could cost you as much as $1,300 a year.
2) Take a weekend and review your financial situation. Review your spending, identify any subscriptions or apps you pay for and stopped using, build a pay-off plan for your loans, and write down any financial goals. Getting familiar with your finances is step one to making informed decisions in 2022 and beyond.
3) Create an emergency fund in order to be ready for new tires for the car, hot water heater replacement, medical bills, and more โ all without using credit cards. Put $50 a week into a saving account that youโve designated your emergency fund. After just a year, you could have over $2,500 to be able to offset or cover emergency expenses, giving you peace of mind.
4) Credit cards are convenient, but they come with a higher interest rate charged on balances. Make sure you are paying off your credit cards each month. If you canโt pay them off right away, build a plan to pay them off beginning with the balance with the highest interest.
5) Consolidate your debt with a home equity loan and save a lot of money on interest. Add up the total amount you owe on vehicles, school loans, or credit cards and arrange for a home equity loan for that amount and pay them all off. Youโll save on interest and only need to make one monthly payment.
6) Considered refinancing your mortgage but havenโt gotten to it yet? Now might be the time. Most likely youโll be able to lower your monthly payment and save a lot of money over the life of the loan.
7) Another way to put money in your pocket is utilizing tax deferred savings plans. A Health Savings Account (HSA) is a great tool to save money for future health expenses without paying most taxes on it.
8) Speaking of saving on taxes, for funds that you may not need until retirement, save it tax-free in an IRA, 401K, Roth IRA or other tax-free retirement plan.
Good luck with these resolutions and the added money they can bring you. Stop by your local Penn Community Bank branch and our friendly and knowledgeable team members will be glad to help you wherever you are on your financial journey.
Wishing you a happy, healthy, and prosperous New Year!
