Lone Star National Bank
A New Year Means a New Financial Outlook
Apr 08, 2017
A new year always seems to be the best time to start eating healthy, leaving negative karma behind and overhauling your financial life. Many tips and tricks can serve as excellent starting points to help you get closer to your financial goals. Below are just a few to consider to add to your agenda.
What is it That You Want?
Not knowing what your financial goals for the new year are is like driving down a dark road with your headlights off. Figure out where you’re going by having clear and concise financial goals in mind. Writing them down will also help. Start by choosing to pay off all of your debt or saving smartly for your bank account. Always make sure you’re goals are realistic and attainable. A savings account will grow at a steady rate and ensures that your money will be well taken care of!
Get Debt Out of the Way
Debts are not equal and a priority for the new year should be prioritizing them by their annual interest rates. The ones with the highest rates should be paid off first. Why? In most cases, paying off debt is wiser than saving money. For example, if you owe $5,000 on a credit card and pay 19% annual interest ($950 per year) while at the same time owning a $5,000 certificate deposit that pays you 2% a year (about $200 a year), you can actually save yourself over $600 by making a resolution to pay down debt.
Use an Automatic Savings Plan
Automatic savings plans are offered on anything from brokerage accounts to government bonds.
Simply call the financial institution or broker to let them know the amount that is to be withdrawn every month and the date. The amount will then be deposited into your investment account. If one of your resolutions is to save, an automatic withdrawal will force you to follow through since the funds are taken out of your account automatically. If you’re ready to enter the exciting and fulfilling world of investing, then ask about our investment services.
Collect Change for a Rainy Day
When making purchases with cash, try using whole dollar amounts. For example, if you spend $58.95 and pay with $60 in cash, pocket the change. Don’t use it on something else. The first thing you should do is collect that money at home. If you stick to this little nifty policy and don’t spend any change throughout the year, you could end up with a nice amount.
Become Financially Savvy with Us
Consistently applying yourself to learn how to save, invest and spend your money is essential in creating a financially stable future. The fact that you’re planning to be financially conscious in 2017 shows that you’re on the right path. Call or visit us anytime to discover the benefits of our financial services.