Financial Tips For 2013

financialtips2013No matter how much you make, it is easy to spend every last dime. A plan for your finances ensures that you are prepared in the event of the unexpected. Consider improving your financial health in the new year. Start with a budget and find out how much you make and how much you spend. This one step will help bring things in to focus for you.

If you have any credit card debt, make 2013 the year you pay it off and do not accumulate more. Credit cards are a convenient way to pay for things, but it is too easy to get stuck in a revolving credit loop when using them. Make a plan and find out what needs to be done. Some people have even taken on second and third jobs to pay off unwanted debt.

Social Security Benefits for Those Who Qualify

If you watch the news or follow politics, you know social security is hotly debated. If you are not collecting social security right now, it is possible that it will not exist when you retire. You need to have personal retirement savings to protect you and your family when you are older.

Have an Emergency Fund Ready

You also need an emergency fund. Some experts recommend saving as much as ten percent of your income in a separate fund. A good rule of thumb is to save enough money in your emergency fund to support your family for an entire year. This way, if something unexpected happens you have enough money to support you while you look for a way to solve the situation.

Cutting Unnecessary Spending

Look over your monthly obligations and see if there are places you can cut costs. Do you have a cable package that provides more than you really watch? Do you have more minutes or data on your cell phone plan than you use? Do you have redundant services? Is there anything you are paying for that you can easily do yourself? Be sure that the money you are spending on services other people provide has an added benefit to you. For example, paying for child care might allow you to go to work, resulting in a net benefit to your family. But paying the kid down the street to walk your dog may not have a net benefit if it is something you can easily to yourself.

Save Money by Taking Care of Your Health

Look at your health habits. A healthier you means less money on medical bills, prescription drugs and other costs, like sick time from work.

Experts state that just having a plan gets you more than half way to accomplishing your goals. As much as life can get in the way, a plan will let you know if you are on track.

Fred is an avid writer of financial issues and small business lending. He works at a company that provides cash flow solutions for growing businesses.

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