©Shutterstock.com
TikTok’s personal finance advice may be hit or miss, but the latest trend, “financial cleansing,” may have some merit. He’s already into February, but even in the new year it’s not too late to reassess your finances and reset what no longer serves you.
See: GOBankingRates’ Best Regional Banks of 2023
Read: With a looming recession, make these three retirement moves to stay on track
The future of finance: Generation Z and their relationship with money
If you’re looking to detox your finances in 2023, consider trying these “cleanses.”
Evaluate your spending and look for ways to cut it
If one of your goals for this year is to spend less, you typically start by looking back at where you’re spending your money.
Childfree Wealth founder and CFP Dr. Jay Zigmont said: “Your credit card or bank may offer a year-end summary that makes this easy. Ask yourself: If you spend a lot, it may be difficult to even remember what you spent your money on.”
Looking back over the year, we can see areas where we could cut back.
“For example, a $20 purchase on DoorDash may not seem like much, but when you add it up over the course of a year, it can be amazing,” says Zigmont.
lock credit card
If you have credit card debt, consider locking your card and not using it. Even if you don’t have debt, you can keep your expenses in check by avoiding using credit cards.
“Credit cards can save you a lot of money,” says Zigmont. “When you lock your card, you can’t spend money you don’t have. There are restrictions, so move to a prepaid debit card for online purchases.”
Please answer the questionnaire: Do you have a second job or backup plan in case you get laid off?
make a debt repayment plan
Detox your debt with a repayment plan.
“Inflation comes with rising interest rates. If you’re paying your monthly credit card minimum, you may not currently be covering interest,” said Zigmont. “This year he will set a goal to pay off his debt, such as pay off $6,000, and budget monthly. $500 a month, [for example]I want to prioritize getting out of debt, not what to do with the leftover money. ”
While doing this financial cleanse, you can also cleanse your home.
“Go through the dusty room,” says Christopher Whipple, partner at Christopher Curtis Financial. “Get up in the attic and start looking for the box that keeps pushing out.” Selling things you already have that you don’t need can kick-start the debt-free process with large payments, or pay off debt with extra cash. It’s a great way to help avoid
align money
Some people think of money as “dirty”, probably because they don’t align it with their values. Cleanse your finances by making sure the two areas are aligned.
Financial adviser Kerry Keane said, “If you don’t feel well about where you bank, what you invest in, or what companies you support spending, you avoid checking your budget regularly, and your financial We may miss opportunities to strengthen Partner of Earth Equity Advisors.
“From green banking, to sustainable, responsible and impactful investing, to shopping with conscious companies, there are many ways to make your money more aligned with your values. The better you feel about what you’re doing, the more you pay attention to it and the better you manage your finances,” added Keane.
Learn more about GOBankingRates
[ad_2]
Source link
