How to Change Your New Year

There are many things we want to accomplish and that need to do something increase during the new year. A whole new year of attempting to pay off a single credit card only to pay the interest. Let’s not forget the groceries, car gas, taxes, etc. Now – well any time – is the time to start budgeting!

1. Debts

Interest not only influence the economy but our lives. The usage of interest rate is absurd from my perspective, but I don’t make the rules. I mean think about it – you take out a loan in an attempt to better your lifestyle only to be brought down by its interest rate particularly when you cannot find a decent paying job. Although, in the end, it’s how you use the system.

With each year the interest rate is rising, which meant higher interest rates tend to moderate economic growth. If you’re saving money then yes, it does not affect you as much. Unfortunately, if you’re deep in debts, that’s where the trouble lays.

The first thing you must do to hop out of the deep hole is to stop jumping. You must pay above the interest rate if you’re in debt – like me. For example, when a credit card asks me to pay $30, I would pay $100.

The trick for this system only works if you pay above the minimum payment amount for only one card. Do not attempt to pay more than a few dollars above the minimum for all your cards. Travel through the interest rate and choose the one with the highest interest rate and pay that off first or pay off the one with the least amount of debt. Afterward, shred or cancel the credit card. The trick to stay out of debt is to realize you only need one credit card disregarding the fact that every store holds their own.

2. Shipping Fees

If you’re an online shopper – like me, regularly send care packages, or running a small box you must know that shipping rates had increased.

If you’re a shopper try to purchase items in bulks so you can qualify for free shipping or sign up for Amazon Prime. In my perspective, Amazon Prime is worth it since you pay a fixed amount per month and it’s a good offer if you’re a heavy online shopper.

If you’re a seller, use the system to your advantage. I am not saying I do this, but I have a friend who select the lowest price shipment disregarding the weight. Shipping companies believe it will cost less to actually ship the item then send it back to you for incorrectly punching in the weight or size. Remember, you did not read that here.

3. Travel

According to the Global Travel Forecast, the average cost of flights worldwide is expected to increase by 2.6 % with hotel increasing at 4%. If you’re a traveler, I will take a step back and save the travel money for another year or emergencies. If you can’t stay away from the relaxation destination then I suggest thoroughly planning your routes which mean understanding when is the best time to travel.

For example, it’s cheaper to fly out on a Tuesday than any other day. Why? It’s simple, no one will fly out that day.

4. Home

Due to the economic growth, it is time to think about saving money for a home. Yes, house prices are rising with each year, but you never know when it will drop. Of course, it won’t drop drastically like back when I was a child – I’m 23. Even if you don’t plan on purchasing a house, it can be use as an emergency fund.

5. Health Insurance

You’re walking down the street and bang – a shoe fell on your head.

When that hospital bill hits – you will wish that shoe kill you.

My best advice when it comes to health insurance is to stay on your parents or jump onto your spouse. If both of you are working, then compare and contrast your insurances to see which is the best then opt out the other. I am not ashamed to say, I am still on my parent’s health insurance.

If you do not have the option of either, I would get health insurance anyways. It’s a must, just cut down on the coffee and watch out for flying shoe.

We may not be able to control economic changes, but we can take control of our finances.

Happy Saving!