Year-end is the best time to check how well you have been able to live up to your financial expectations. Take some time off and try to evaluate your performance throughout the year.
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While evaluating your plans, ask some relevant questions. Have you been able to live up to your expectations? What are the factors that have contributed to the failure of your financial plans?
Once you identify the loopholes in your financial plan, use the below mentioned financial tips to improve your financial situation by the end of the year. These tips will ensure you enjoy your yearend parties with minimum debt or financial burden:
Nothing can disrupt your financial life as much as debt. Debt can not only ruin your personal finances but can also lower your credibility in terms of your credit score. To get out of debt you should start by knowing where you stand. Check the status of your loans and check the accuracy of your credit score.
Managing debt efficiently can help you avail loans at the lower interest rates in the future but if you cannot manage debt responsibly you may have to face problems later in terms of availing credit from the bank.
Before availing a new loan to fund purchases, you need to pay your existing debt. Availing excessive loans can drain your savings too. Before the year ends, make a list of all your debt and consider paying them off within a timeframe.
Keep checking your credit score and try and improve it by the end of the year. A full year is enough time to repair your score by 50 to 100 points. You can pay your dues on time, loan EMIs should be paid before the due date every month.
A Credit score is a measure of your credit-worthiness and you should not take chance or compromise opportunity that can help you maintain or improve your credit score. So set realistic goals and try to bring positive change in your credit history.
For instance, if you have a credit score of 650 points at the beginning of the year and you want to improve it and bring it to about 750 by the yearend then you can easily achieve it within as repaying debt can improve your score by 20-30 points each month. You can also bring some considerable change in your credit score through credit mix i.e. by getting a home loan, credit card or personal loan or a mix of other secured and unsecured loans.
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Be it an exotic vacation or a family holiday the most common holiday season is October to December. While this is a lovely time to travel due to extensive holidays, the rates of booking accommodation, transport, and flights are at their peak prices. Trips and tours at this time can cause a dent in your savings or may lead to excessive expenditure due to high prices. At most places, yearend parties and festivities can lead to a massive hike in food prices.
If you can push your holiday a little to, say the end of February you will surely save a good amount of flights, accommodation, and food as well. A bonus is that you have to deal with fewer tourists on such vacations.
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Year-end is the best time for retailers to offer shopping discounts and a limited period offers on lifestyle goods, household items, and furniture. This is merely a gimmick used by retailers to attract customers in the name of cashback and rewards.
Try to stay within your means and control your shopping impulse. A festive vibe often ends up draining more money than we think of. Most often we make unnecessary purchases when we see other shoppers rushing to get some items.
Once the festive offers are gone, you can always shop in peace with your new shopping budget allocated at the beginning of the next year.
Just like losing weight, growing good financial habits takes time. But dedication and regularity can make it possible. Don’t shy away from making changes if you lose your track in between. Making a better financial decision, reducing debt or improving your credit score is not about a quick fix, it about taking control of your personal finances and changing your habits so that you can achieve your financial goals slowly and gradually.
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