With the start of a new decade comes the desire to make new money resolutions. At least, that’s the case for many people. Whether you want to finally start that emergency fund or really look into investing this year, there are many ways that you can treat your money better this decade. In this article, you’ll discover potential resolutions that can help you get your money right.
(Finally) Pay Off Your Debt
This is a huge resolution for many people. While getting rid of 100% of your debt this year may not be possible for every single person, you can take a sizable bite out of this goal this year. One way you can do this is by attacking your credit card debt first. That’s because this type of debt often has the highest interest rates.
Another method of paying off debt is getting aggressive about paying off the smallest bills. This way, you can build confidence in your ability to get rid of your debt and eventually raise your credit score. If your current salary doesn’t allow you to put a lot of money aside for debt repayment, consider coming up with one or two side hustles to earn some extra cash.
How to Earn More Money for Debt Repayment in 2020
Having a large amount of debt can keep you from doing such things as getting a vehicle with favorable financial terms, obtaining credit cards that don’t have sky-high interest rates, and even purchasing your own home. That’s why so many people work side hustles for extra money. If you need more cash to pay off your debts, try and come up with a few ways to earn more money.
Some of the side hustles that you can take on in 2020 include some of the following activities:
- Freelancing (writing, web design, graphic design, etc)
- Becoming an Uber or Lyft driver
- Consulting services
- Social media manager for small businesses
Dedicate More Money Towards Your Mortgage
Start the decade off right by making one or two extra payments towards your mortgage. By making these extra payments, you can reduce the amount of money you will ultimately need to pay towards your mortgage. You also cut down on the interest you will pay over time.
Start an Emergency Fund This Year
If you don’t have a rainy day fund, start one in 2020. You never know what can happen. You might need to get expensive repairs on your vehicle. Or you could find yourself in a position where you will need to move from your residence quickly. When you have an emergency fund on hand, you can face these urgent problems with confidence and speed. Make a goal to save a few months of your salary in your fund. But even if you can save only a couple hundred dollars a month at first, that’s a vast improvement over an emergency fund that has $0 in it.
Start Saving Money
This potential resolution isn’t easy for those who aren’t natural savers. But it can be done. Start by using coupons at your local supermarket, being on the lookout for extensive discounts at your favorite stores, and seriously considering cutting off your cable television if you haven’t already. These are just a few of the things that you can do to save some serious cash in 2020.
Start Making Budgets
Very few people find budgets fun. But it’s a necessity if you don’t want to mindlessly spend money this year. Make this process fun by creating your budgets while you watch your favorite television shows, listen to a Spotify playlist that you created just for this purpose, or involve your partner in this process. Whenever you create your budget for the week or month, start by writing down your financial goals at the beginning of every budgeting session. That way you can focus on ways to create your best life by making a few sacrifices now.
Eat The Majority of Your Meals at Home
Visiting your favorite restaurants with your friends might be one of your favorite things to do in the world. You might also love ordering in your favorite meals while you binge-watch your favorite shows on Netflix. However, both of these activities can get really expensive over time.
In 2020, try to save money by eating most of your meals at home. Try to make staying in fun by trying out new recipes. If you absolutely must go out to eat or order pizza from your favorite pizzeria, make room for it in your budget. When the money in this category runs out, you eat at home until the next time you create the budget.
Consider Whether You Really Need a Car in 2020
Owning a car can be costly, especially if you live in a congested city. Some of the other ways you can get around town include biking, public transportation, rideshare companies or taxis, or carpools that you create with your coworkers. If you live in an area where having a car is necessary, there are still ways to spend less money on this expense. Try walking or biking to nearby destinations. If you live in a two-car home, really think about whether you can get by with just one vehicle. If both you and your partner need your vehicles, work to pay off anything you might owe on the cars.
A new decade often brings new beginnings. If you want, you can create new beliefs and attitudes around your financial life. By working hard to improve your financial life in 2020, you can create a brand new start for yourself as you navigate the next 10 years.