It isn’t too early to start planning positive financial changes for the New Year. In this article, Freedom Debt Relief reviews several tips to kick off the year with positive financial changes.
Building A Family Budget
Budgets will help keep family spending under control. It’s important that you and your spouse regularly go over the budget and discuss it openly. If only one spouse is on board with a budget, it will be difficult to maintain.
Discussing the budget and money in general with your children will also teach them invaluable financial skills. These are hands on skills at an early age, which they won’t learn anywhere else.
Do You Have The Right Amount Of Insurance To Protect Your Family
If something happens to you, insurance can step in and continue providing for your family. When is the the last time you reviewed your policy to determine it still covers what you need?
Freedom Debt Relief reviews says that if your kids are about to graduate and you have 10 years remaining on your insurance, that amount of coverage probably isn’t need anymore.
You’ll still want long term coverage to protect your spouse. Term insurance isn’t expensive and you can often get 10 to 12 times your annual income coverage.
Increasing Your Retirement Plan Contribution
Increasing the amount you’re contributing to your employer’s retirement plan can help keep your retirement on track. Freedom Debt Relief reviews mentions that each time you get a raise, increase your retirement contribution by the same amount.
To increase your retirement contribution, visit your retirement plan’s website. From there, you can manage your holdings and contribution amount. Or, you can simply call your company’s human resources department for help.
Also be sure you are taking full advantage of any matching supplied by your employer. This is free money so take full advantage of it.
Are You Getting The Best Interest Rates?
How much is debt costing you each month? Depending on how many loans you have outstanding and the rates being charged on them, debt can be a fairly large part of your overall spending.
For debt such as auto loans, credit cards and personal loans, interest paid on them isn’t tax deductible. It’s basically money that gets burned every month.
Instead, you may want to consider using a home line of credit (HLOC). Interest on HLOCs is deductible. They also have great rates. Additionally, you don’t have to be approved for them since the line always remains open, ready to use. This also prevents a hit to your credit report since you don’t have to open a new line of credit.
Just be sure you are able to make payments regularly on the HLOC, since it is secured by your home.
Starting the New Year off with a plan to reduce debt and put your finances in order can make you feel great and excited to start the New Year.
Freedom Debt Relief could help you get your debt under control. If you’d like a free debt evaluation from a certified debt consultant contact them at freedomdebtrelief.com.