Here’s How To Ensure That Your Finances Look Healthier This Time Next Year
Americans are feeling optimistic about the state of their finances. A new Gallup survey has revealed that 45% of women are better off today than they were this time last year. Meanwhile, 69% of the population anticipate that they’ll be in an even better financial position in a year’s time. However, in order to achieve this monetary goal, it’s essential to manage your money more effectively.
Curb unnecessary spending
According to Forbes, coffee, shoes, and jeans are the three things which U.S Millennials are needlessly spending out on. And, it’s women who are faring the worst. 75% of American females own more than 20 pairs of shoes, yet wear just three or four pairs of them. What’s more, women pay 10% more than men for a pair of jeans and spend a total of $161 per month on clothing. To ensure that you are in a better financial position this time next year, it’s time to review your spending habits. Pledge to only buy what is necessary and avoid spur-of-the-moment purchases which do nothing other than ruin your bank balance and sit in the back of your wardrobe.
Be loan savvy
Taking out a personal loan is a growing trend in the U.S. There are currently 20 million outstanding personal loans in the country, which is an increase of 50% in just three years. Personal loans are most commonly used to tackle existing debt, according to PR Newswire. Although, they are also frequently used for home improvements, significant purchases, and medical bills. When you’re borrowing funds for items, make sure you keep a look out for hidden fees and charges. Additionally, take note of the repayment terms and make sure you meet all your repayments. Taking these steps will give you a good chance of being in a much more prosperous situation this time next year.
One in four people doesn’t have any emergency savings. However, should your car suddenly break down or your home require an urgent repair, you’ll soon find your hopes of a flourishing 2020 dwindling. The savings you make by curbing your unnecessary spending should be tucked away in a high-interest savings account ready to fall back on if and when required. It’s also wise to set up a regular standing order so that cash is automatically transferred into a savings account for you each month.
It’s great that Americans are confident about their financial future. But, it’s important not to become complacent and to manage your money better over the next 12 months so that you meet your goal.