BBB Tip: New year, new finances!
Milwaukee, Wis. – The holiday expenses may be looming on the credit card bill, or perhaps the bank balance is a little lighter from the extra gifts exchanged with family and friends.
If this is the year to reduce debt and bump up the savings account, revisiting prior financial goals is not a bad idea.
When thinking about current finances and sticking to a New Year’s Resolution, consider these tips from BBB:
- Set clear financial goals. Begin by defining specific goals, like building an emergency fund, paying off debt, or saving for a vacation or retirement. Clear goals provide motivation and direction for financial choices.
- Inventory your credit cards. Credit cards have high-interest rates, which can waste much money over time. Reach out to the credit card company to see if a balance transfer offer can be used to switch to a card with a lower rate or ask if the interest rate can be lowered. Research the financial institution where the credit card is held on BBB.org first. Read the terms and contract carefully – there may be big penalties if a payment is missed. If you have multiple cards, decide which debt-paying strategy is best for you. Some experts recommend paying off cards with the highest interest rates first. Others recommend paying off cards with the smallest balances first. Additionally, try sending in payments throughout the month. Put the $5 that would have been spent on a morning coffee towards debt instead.
- Avoid wasting money on unethical businesses or scams. When making a purchase or choosing a business, check with BBB. Making careful decisions now can save time, money, and headaches later. Research all companies at BBB.org, and check BBB Scam Tracker regularly to see what scams are happening in your area.
- Revisit subscriptions and memberships. Review all recurring payments and cancel any services no longer needed. These small adjustments can add up over the year.
- Plan for large expenses. List out potential major purchases or expenses (like vacations, home repairs) and start setting aside funds monthly to avoid future financial strain.
- Take advantage of free tools. Many online tools can help manage and reduce debt.
- Start budgeting. Creating a written budget and tracking spending is one of the best ways to save money and stop spending more than what is earned. First, figure out how much debt you have; you need an accurate picture before figuring out your budget. Note the difference between fixed expenses, needs, and wants. If you have debt, include repayment goals in your budget. If possible, factor in retirement and emergency savings. Save money by giving up morning coffee – and cooking at home instead of getting takeout. Factor in any alternate income, like selling unused items or part-time work in the gig economy.
When possible, shop and use BBB Accredited Businesses that follow BBB’s Standards for Trust.
For more information
Visit BBB’s financial wellness HQ
Learn more about holiday returns and exchanges.
View the online version
ABOUT BBB: The Better Business Bureau has empowered people to find businesses, brands, and charities they can trust for over 110 years. In 2023, people turned to BBB more than 218 million times for BBB Business Profiles on 5.3 million businesses, and 80,000 times for BBB charity reports on about 12,000 charities, for free at BBB.org. The International Association of Better Business Bureaus is the umbrella organization for the local, independent BBBs in the United States and Canada.
NOTE: This press release was submitted to Urban Milwaukee and was not written by an Urban Milwaukee writer. While it is believed to be reliable, Urban Milwaukee does not guarantee its accuracy or completeness.
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