SPRINGFIELD (WGEM) – New year, new resolution!
Many people are thinking about losing weight or working toward that promotion. But there’s another important goal people can work on, improving their financial health.
Illinois State Comptroller Susana Mendoza (D) oversees the state’s finances, and she has tips for people can better manage theirs.
She said the first thing people have to do is be honest with themselves about their financial situation.
“When it comes to our own personal finances, denial is not just a river in Egypt,” Mendoza said. “It is the one thing that most people do, which is not want to acknowledge their current situation, and it’s also the number one reason why they’re always constantly worried about finances.”
She said people need to look at where they are financially right now, and how to get where they want to go.
Mendoza adds, getting there starts with two things, paying down debt and saving up for an emergency fund.
“This could be much more simple than you think it is,” Mendoza said. “It could just be setting aside a little bit of extra money each month. When you do that, you set aside a little bit for savings, and then you set a little aside and you actually pay it on top of what your current minimum payment is.”
She said those extra payments will help make a significant dent in a person’s debt.
In addition to paying off debt, she said people should make a budget and stick to it. They should cut out unnecessary spending like a subscription service they don’t use or a daily trip to a local coffee shop.
“Set realistic spending limits for each one of those categories and try to track all of your spending,” Mendoza said.
She also said regardless of how someone gets their finances in order, one thing is key.
“Just getting started is the number one, most important resolution to make,” Mendoza said.
Mendoza said people should also check their credit scores and work to improve them. They should also be on the lookout for potential scams and identity theft.
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