Clients who planned to start 2013 right by reducing debt and saving more may be wavering from their goals.
This is because it takes self-discipline, time management, dedication, support, and reliable tools and resources for an individual to reach a position of financial comfort, says Money Mentors credit counselor Stacey Townsend.
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Here are some refresher tips to keep clients on track.
1. Get Organized – Take a look at income, investment, insurance, assets and debt.
2. Set and prioritize goals – Clients may not be able to simultaneously work on all their financial resolutions, so suggest working in order of importance.
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3. Create a budget – Begin by keeping track of all incoming and outgoing funds. Create spending categories such as food, entertainment, credit card payments and rent. Clients may want to cut back or eliminate certain purchases if their debts exceed more than 40% of their incomes.
Read: 5 tips for self-employed clients
4. Start saving – A pay increase or tax refund are opportunities to contribute to emergency or retirement funds. Clients may be able to reduce bills such as cell phone and cable. Attempt to set aside one day each week where they don’t spend any money, and instead put that money into a savings account.
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5. Pay down debt – Tell clients to stop using a credit card unless they know they can pay it off fully before the end of the billing cycle. Also, talk to their banks about reducing interest rates. And do clients have items they no longer need? Suggest a garage sale, or one of the many websites where they can sell what they’re not using. This can help generate some extra money to pay off debt.