Josh Elledge - Chief Executive Angel
As Christmas and the holiday season wraps up this week, we'll spend some time reflecting. Eventually, thoughts turn to finances ““ both on expenses from the holidays, and on everyday spending throughout the past year. While it's easy to get sidetracked by holiday spending totals, financial fallout isn't the result of just a few weeks of spending. It's the cumulative total of the cost of life for 2014. Facing that reality will result in thousands of Americans making a New Year's resolution to “get in better control of their finances in 2015″.
For the third year in a row, Bankrate.com's annual New Year resolution surveyrevealed that the top priority for Americans is “getting caught up on bills.”
Reading some of the highlights of the survey results shows Americans are not only concerned about bills, living expenses, and debt, but the priority of saving money (or having savings) has dropped for the third year in a row. Greg McBride, CFA, Bankrate.com's chief financial analyst stated, “Americans' top financial priorities reflect the realities many households face of stagnant incomes, outstanding debt, and insufficient savings.”
Presumably, this isn't because Americans don'twantto save, but rather because theycan'tsave. Their income and obligation totals are too close together. Here are those numbers from the survey:
–41% of Americans say that their top financial priority is getting caught up on bills or staying current on living expenses (up from 36% in 2013 and 32% in 2012).
–22% cited “˜paying down debt' as their top priority (previously 20% in 2013 and 23% in 2012).
-17% say “˜saving' as their top priority (down slightly from 18% in 2013 and 20% in 2012).
So what can you do if your New Year resolutions match some of these concerns? The good news is that methods for improving finances are not secret. In fact, you probably already know them. The basics of solid financial handling have been around for centuries. And the best news is this: most simply take a little time, a healthy dose of discipline, and a commitment to change.
As 2015 begins our 8thyear in business, SavingsAngel.com is once again committing to helping families improve their lives through information and teaching. Let's start right now, with a quick reminder of some of the foundations for a secure financial future:
–Live within your means ““ aka have a spending plan.It may feel daunting to write everything down, but it is also liberating. The key to a successful budget is to not kid yourself about what you spend and where. Make a bit of room for things like eating out and treating yourself to a latte. You are going to do those things, so pretending you're not is an exercise in futility. A budget that isn't realistic does you no good.
–Cut where you can.If the budget isn't balanced, you need to figure out where you can cut back. Again, it must be realistic. Don't expect to suddenly stop going to business lunches or getting your hair cut. It's not going to happen. Find things you can actually cut that make sense. Don't be afraid to contact service providers and ask for lower rates. I recently cut my family's cell phone bill by close to $80 by asking for discounts.
–Use coupons for everything you can.Yes ““ using coupons can take some extra time when shopping. However, if you cannot work more, you need to make money some other way. Coupons are perfect and it's not uncommon for SavingsAngel.com fans to earn $30 an hour or more by printing and clipping coupons.
–Save some money for a rainy day““ even if it's only $5 a week. If you have the option, set up an account and automatically have money go there from your paycheck. If not, do it manually when you cash or deposit your check. Even a small amount adds up over time, and is better than no savings at all. Once you've set up the habit, it's easier to increase to $10 a week than if you had done nothing at all.
These four basics are just the beginning of an improved financial future. I'm eager to help you on to a successful and abundant 2015.
