You have to be honest with yourself if you want to take control of your finances. It’s like going to the gym to get in shape but lying about what the scale says…you are only cheating yourself. So, take an unfiltered financial selfie! The new year is a great time to examine your money management and look at how you can re-evaluate your spending and savings habits in key areas. And trust me, it can even be fun to get on top of your finances. Here’s how:
Create a Spending Plan.
Just like diet experts recommend an “eating plan” as a more sustainable long-term approach to dieting, I recommend a “spending plan” instead of going on a crash money diet. A sustainable spending plan is broken down into the three E’s: The 3 E’s: “Essentials” (70% of your overall monthly budget for basic expenses), “Endgame” (15% of your monthly budget for things for your future), and “Extras” (15% of your monthly budget for whatever you want). And you can even toss in a fourth “E” for “Eno®,” your Capital One® assistant. If you’re a Capital One customer, Eno provides updates on your account balances or can proactively remind you when bills are due, which makes staying informed of your spending plan that much easier.
Start Naming your Savings.
Change your mindset and your finances will follow. Create “sub-savings accounts” in your bank account to save for things like “My Birthday Trip” or “My Best Friend’s Wedding” or “My Broken iPhone Fund” (which is what I have). It allows you to visualize exactly what you’re saving for so you’re more like to feel motivated.
Make Digital Tools Your BFF.
Let’s be serious, life is busy. There’s so much to manage. Look for digital tools that work for you proactively and give you greater peace of mind – like Eno from Capital One – which helps you look out for your money 24/7. If Eno sees a double charge on your account, Eno will send you an alert asking if you meant to make the same purchase twice. You can also get your balance, recent transactions and more from Eno, so you can stay on the go and on top of your accounts in an instant. To learn more, visit www.capitalone.com/Eno.
Work on your Credit Score.
It’s your most important financial asset – it’s connected to the interest rates you get on your credit cards, mortgages and car loans. It’s essentially your financial report card. It’s also often connected to whether or not you can rent an apartment or get a job because a landlord or employer will want to use it to determine how responsible you are. First, check it and see exactly what you’re working with. CreditWise from Capital One is a free tool available to everyone and is a great way to monitor your credit score without hurting it. Then, don’t cut up credit cards, instead only put one recurring bill on them. And perhaps most importantly, pay your bills on time. Eno can make that easy too when you sign up for bill pay reminders. If your Capital One credit card due date is approaching and your bill isn’t paid, Eno can send you a friendly reminder text. And, you can even pay your bill with Eno, if you’d like!
The first step to starting 2019 off on the right foot financially is proactively setting your priorities and being honest with yourself about them. The second step is making clear resolutions you can actually and want to stick to that will make 2019 your best financial year yet. You got this!
This post is sponsored by Capital One®The first step to starting 2019 off on the right foot financially is proactively setting your priorities and being honest with yourself about them. Click To Tweet