Reset Your Finances This March
| Posted in Bank Blogs
Looking to take charge of your financial life? There’s no time like the present. With the chaos of the holidays in the rearview mirror and spring and summer just ahead, March is a winning month to reset your finances. Here are 10 ways to help you:
1. Track your spending. March isn’t just the time to keep track of your brackets and favorite college teams; you can also track your spending. Review your account statements or account activity online to see where your money is going.
2. Create your budget. There’s a simple budgeting rule called the 50/30/20 rule. It says that your money should be spent as follows:
- 50% on needs, which include essentials such as your rent or mortgage, utilities, and food.
- 30% on wants, such as entertainment expenses.
- 20% on saving money and paying off debt.
Review your expenses in Step 1 and make adjustments to align your spending with these guidelines.
3. Prepare for unexpected expenses. Create an emergency fund to provide a safety net to help you manage unexpected expenses like car or home repairs or medical bills. Your emergency fund should have at least 3 to 6 months of your essential expenses.
4. Do a credit check. Having good credit can help you get the loans you need to reach your goals and save money on interest. At AnnualCreditReport.com, you can request a free copy of your credit report each year from Equifax, Experian, and TransUnion, the three major credit bureaus. Be sure to review your report for errors or unfamiliar activity and dispute any inaccuracies right away.
5. Get the most out of your pay. To help make it easier to save and control your money, you can have your direct deposit sent to multiple accounts. For example, you can direct funds to your checking account to pay bills, your emergency fund to help with unexpected expenses, and your long-term savings for goals like buying a home or saving for college.
6. Check your insurance coverages. Having adequate life, home, and auto insurance is critical to protect your money and your loved ones. Review your coverage levels, deductibles, and premiums to ensure they match your needs and any changes in your lifestyle. You can also shop around for better rates, which could save you money.
7. Pay down debt. March is also a great time to slim down your debt. If you’re carrying high-interest credit card balances from the holidays, work on paying down or consolidating your debt. Always pay more than the minimum balance due each month and never miss a payment.
8. Review your subscriptions. Ten dollars a month may not seem like much, but multiple subscriptions can quickly add up and put a dent in your budget. Review all your recurring charges and look for ways to cut services you don’t use.
9. Plan for seasonal expenses. Spring and summer are the seasons of fun that may include vacations and travel. Setting aside money now can help make these expenses more manageable.
10. Set clear financial goals. Write down a list of your goals and be specific. For example, you may want to add $2,500 to your emergency savings fund by the end of the year or reduce your high-interest debt by $1,500. Track your progress.
The most important step you can take is to make your money a priority. Stay on top of your spending, ensure you have money set aside for emergencies, and remember to make adjustments as you go. Small steps in March can lead to big financial wins in your future.