Best Changes to Make for Healthy Finances in 2019

No one wants to be broke, whether it’s the start of the year or the end of the year. You’re probably making a ton of resolutions this time of year about how you’re going to have healthy finances in 2019. There’s good news on that front: it’s not hard to get into better habits when it comes to your personal finances. In fact, we’re going to show you some of the best changes you can make this year to help your finances become that much healthier!

Best Changes to Make for Healthy Finances in 2019

Make one Extra Mortgage Payment This Year

It might sound difficult, but if you save towards it, you can make an extra mortgage payment once each year. If you do this every year you could shorten your mortgage’s length by as much as four or five years! When you have your house paid off half a decade ahead of schedule you’ll be rather pleased with your finances. There’s no time like the present to start saving towards this goal!

If you start now, you can save a bit here and there towards this goal. Alternatively, if you have a sudden burst of money, such as a bonus, it wouldn’t be a bad idea to go ahead and pay towards your mortgage with it.

Save $1,000

Odds are pretty good that you don’t even have a thousand bucks stashed away. If you do, that’s awesome! If not, don’t feel bad: three out of four Americans don’t have $1,000 in their savings. This is something you can fix if you start saving now! When it comes to saving, the first thing you need is a $1,000 emergency fund. You never know when you might need money for something like your car breaking down or an appliance going belly-up.

Set a Personal Shopping Ban

Go ahead and get out your calendar and mark off two weeks out of the upcoming year. These are now Shopping Ban days. During these two weeks, don’t spend a single dollar on anything that isn’t a literal necessity. Groceries, gas and lodging are all fair game, but everything else is off-limits. No going to the movies or out for dinner, no buying video games or makeup. No new clothes, new shoes or new toys.

This will give you insight into just how much money you spend that you don’t have to. After the two weeks are up, take all the money you didn’t spend and invest it into your savings or retirement.

Start a Retirement Fund or Continue Your Current One

If you haven’t started saving for retirement yet, now is the time. The sooner you start saving, the better! Every dollar you put into a retirement savings account begins accruing interest. The dollars that those dollars generate also accrue interest. This compounding, snowballing effect is awesome when it’s working in your favor. Get on the right side of compounding interest and start saving today with your retirement account!

If you already have a retirement account, awesome! Check on it and see how much it’s grown for you. Then, start thinking about how much you can comfortably contribute to it each paycheck. The more you save now, the more you’ll have back when you retire.

Make a Budget

Stop putting this off! You know you need a budget, and there’s no better time than right now to make one. When you get your paycheck, you need to know ahead of time where that money is going. There’s no excuse for frivolous spending when you have a budget set up. Make sure every dollar has a job: whether it’s going into savings, retirement, towards bills or to your small “fun money” pile, you need to take control of your finances.

Remember: you control your money, it doesn’t control you. Don’t have a negative relationship with your wants and neglect your needs. A budget is a great way to get in control of the money you’re trying to save.

Declutter

Speaking of taking control, sell your old stuff. Take a bunch of the old junk you have lying around that you don’t need anymore and have a yard sale. Not only will this help you to clean out your space and make more room for healthy living, it’ll also line your pockets! This way, you can cultivate a healthier relationship with your possessions. Remember: you own these things. Don’t let them own you. If they’ve outlived their usefulness, sell them and pocket the profits!