(Mirror Daily, United States) – If you manage to stick to some key financial resolutions this year, you’d notice that you’ll get closer to financial independence in no time.
According to WalletHub, there are some top moves that you should do this year to improve your account balance dramatically.
One first step is to instruct a credit monitoring service to notify you whenever your data has been compromised. With breaches like Equifax,’ such service are incredibly necessary.
Another move is to keep an eye on your credit to prevent fraudulent access or errors. Services like the Annualcreditreport.com can provide a free credit report every year.
Another financial resolution is to pay your bills as soon as you got your monthly paycheck, without delay. This prevents extra fees for late payments and remove the temptation of buying things that you don’t really afford.
One more resolution is to get rid of your credit card debt asap. In the U.S.A., the combined credit card debt has climbed to $808 billion. If the Federal Reserve decides to hike interest rates overnight, that debt will become incredibly expensive.
Setting Goals and an Emergency Fund
WalletHub recommends setting a goal to repay the debt, for instance 20% through December 2018. What’s more, you should focus first on repaying the debt that has the highest interest rate.
Another financial resolution for a healthy wallet is using different credit cards when making purchases. For usual purchases, you should use a rewards card not the same credit card. Also, a card with zero percentage rate per year can lead to important savings. Different cards can also help you monitor your spending.
The last resolution and the most important is building an emergency fund. The extra cash can be of great help in case of a medical emergencies or job loss. WalletHub experts recommend setting aside between three to six months in living expenses. In the ideal case, the emergency fund should enable you to survive 12 to 18 months without a job.
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