1. Pay Down your Credit Card DebtIf you’re one of the millions of Americans who have thousands of dollars in credit card debt, then the New Year is a superb time to lower your balances. The average American with credit card debt now owes more than $15,000, and the country as a whole owes more than $700 billion on credit cards alone. Without making a concrete plan to lower your balance each month, you may find your interest payments spiking in the New Year. Even if you can’t pay off your balances in full, it’s critical that you at least make your minimum monthly payments.
2. Contribute to your Retirement FundIt’s never too early to start saving for retirement. Even if you’re a twenty-something recent graduate working at an entry level job, you shouldn’t disregard saving for your retirement. Set aside a certain amount of money each month that goes directly into your retirement fund, and hold yourself to it. Even if it’s just a symbolic amount, it’s definitely a good idea to get into the habit of saving while you’re young. *If you don’t have a retirement account, then your first priority should be opening one.
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3. Improve your Credit ScoreConsidering how integral your credit score is to your financial wellbeing, it’s mind boggling how many Americans don’t bother taking a look at their credit reports. Your credit score can have a tremendous impact on some of the most important financial decisions of your life, including your mortgage rate, credit card terms, and car loan availability. The New Year is a great time to learn more about how you can begin improving your credit score and gain the benefits of having excellent credit.
4. Review your Life Insurance PolicyAs you proceed through life, it’s crucial to start paying more attention to your life insurance in order to ensure that your loved ones are protected if something happens to you. Depending on your needs, you should adjust your life insurance policy to make sure that you have the coverage you need, and the New Year is an ideal time to review your current policy.
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