After a long and expensive holiday season, your finances could be in a lot of trouble, and it could be all thanks to where you live. While the National Retail Federation puts the typical Christmas budget at roughly $805 per person, many of the communities in Texas go above and beyond the national average.
Everything’s bigger in Texas, including your holiday budgets. In some cities, it’s as high as $2,624 per person! Whether or not you spent anywhere close to that number, your budget could do with a bit of tightening in the New Year — much like your belt after so many family dinners. Make sure your New Year’s resolution for saving money starts off on the right foot by taking advantage of the following advice.
Don’t Be Discouraged!
Resolutions are hard. Think of the last time you said you’d get back into shape. Chances are you ditched the gym and your diet once February rolled around. Despite your best efforts, it’s likely your frugal ambitions hit a brick wall in the New Year. Bills, repairs, renovations, and medical emergencies can happen, throwing your entire savings plan off.
When it happens, don’t panic. There are Credit Access Businesses, such as MoneyKey, offering installment loans that can help you get back on track. They work with third-party lenders to arrange a small dollar loan on your behalf quickly. The online installment loans at MoneyKey are simple, convenient ways to get small dollar cash advances, which typically never exceed $1,000. What they come with are flexible repayment terms that allow you to repay your advance in several portions over a longer period of time than payday loans. So even if your budget is still reeling from the holidays, you can support the addition of your installment loan’s repayment.
Follow A Budget
The easiest way to spend money is to not keep track of it. Without a financial plan, you can forget where and what you spent your money on, until suddenly you realize you have very little of it remaining in your bank account. Take the time to go over your finances and record your typical monthly income and expenditures. Once you tally all of your regular purchases, you can find any frivolous spending that’s putting your finances at risk. Cut out as much of the ‘extras’ as you feel comfortable doing but don’t be too strict. Eliminating everything that’s fun from your budget can cause unnecessary stress. It can also make those purchases seem like the forbidden fruit. Eventually you won’t be able to resist, and it’ll come at the expense of your resolution!
Financial advisors suggest a 60-40 Rule when tabling a budget. The majority of your paycheck (or 60%) should go towards your regular living expenses. Things like rent, groceries, insurance payments, and any other monthly necessity falls into this category. The remaining 40% of your income should be split equally between pocket money, savings, debt relief, and retirement funds. If your living expenses eat up more than 60% of your income, then it might be time to speak with a financial advisor. They can provide invaluable guidance when it comes to reorganizing your finances.
The New Year is just around the corner. If 2016 has been less than kind to your finances, make sure you’re prepared for 2017. Start following a household budget, and remember, an installment loan is a practical tool when you’re first starting out. Should a bill or repair set you back in your fiscal New Year’s resolution an installment loan will get you back on track.