Doing your income taxes? If so, there is no better time to review your finances so that you have a better overall understanding of where you are, where you want to be, and how to get there.
The best place to start is with your credit score. Do you know what your credit score is? With all three credit bureaus? Do you know what your FICO score is? Chances are that your score changed during the month of January, especially if you used credit cards to help pay for part of Christmas. Typically, the use of credit cards for Christmas can negatively impact your credit score. So, the first thing to do is check your score, then make plans to get those balances paid off as soon as possible!
Next, review your current credit card interest rates. Compare them to the current credit card offers for your credit range. Then, make a change if there are credit cards available to you that offer better interest rates, better rewards, or introductory interest rates.
Finally, work on your budget! Look at what you’ve spent over the past twelve months for food, shelter, and other necessities. Then, take a look at your discretionary spending. Are there places where you can cut back? Maybe you want to grow your savings account? Pay off a bill sooner? Perhaps you want to buy a house? A new car? All of these things affect your budget, so make sure that you have room for additional expenses before you take them on! And if you don’t? Then your budget is where you need to start to FIND the money for those things!
Trust me, once you take the time to sit down and review your finances, you will feel so much more optimistic about your financial future! Not only will the review give you peace of mind, but you might just find yourself a lot more determined to make 2022 your best year yet!