Now that we’re winding down from one of the busiest, most expensive and stressful times of the year, it’s time to take a moment to reflect on 2019 and look ahead to 2020. While New Year’s resolutions often focus on dietary or fitness goals, I’d argue that concentrating on financial goals should be a priority. Here are a few tips on how to do a financial year-end check up!
Be honest with yourself and review what you spent in 2019.
You can’t plan for the year ahead without taking stock of your spending and savings habits from the year prior. Pull up your credit card statements and draw insights from your spending habits, how quickly you made payments, and what you owe going into 2020.
Monthly subscriptions like streaming services and goody boxes are very convenient but can be an unnecessary spend. Now is the time to reevaluate and assess the benefits. Recurring payments such as these are automatically charged to your credit card. If you are a Capital One customer, they can notify you about subscription renewals and double charges
A great tip is to take advantage of budgeting and mobile banking apps that help you monitor your spending throughout the year.
Celebrate the good.
Reviewing budgets, making debt repayment plans, and creating better spending habits isn’t always fun, I get it. However, this is also an opportunity to celebrate your spending success in 2019 and what you did right. Now is the time to create a savings account or emergency fund so that you’re prepared for whatever comes your way in 2020. If you continue to save, maybe you can even have both: saving fund for a specific goal and an emergency fund. Ensuring that you have access to credit, especially in those emergency situations, can make things a lot smoother. Establish or take control of your credit with a Capital One Guaranteed Mastercard. This card helps you build credit while giving you access to benefits like 24/7 customer service, purchase assistance and extended warranty coverage, among others.
Create a vision for your financial future in 2020.
OK, now is the time to make that New Year’s resolution. Resolve, for example, to start exercising smarter spending habits and to be extra mindful about your credit card behavior and identity theft risks. You can work to build (or rebuild) your credit in 2020 by making everyday purchases with your credit card, while staying within your credit limit. A card with rewards is an excellent way to build credit and reward yourself for your efforts. Always make your payments on time (at least the minimum monthly payment) and keep track of where you’re spending money to ensure you’re sticking to a budget and not overspending on unnecessary items.
By having a plan and a goal, you can make 2020 a financially successful year. Naturally, this same strategy works for other goals like those popular health and wellness goals as well! Just like your diet and fitness habits, it’s easy to get off-track. But, ensure that small errors are quickly corrected, forgive yourself, and get back on track quickly. The key to success is consistency
Disclosure: This is a sponsored post in partnership with Capital One Canada. All opinions and commentary are, as always, my own.