How to Stop Living Paycheck to Paycheck in 2016

December 31, 2015

The New Year is almost here. While you may have a lot of resolutions for 2016, if even one of them includes improving your financial situation, here are a handful of things you can do to start achieving this goal – and stop living paycheck to paycheck in the New Year.

Essential Tips for Improving Your Finances in the New Year

  1. Get your finances on track in 2016 with these tips from a Colorado Springs bankruptcy attorney.

    Get your finances on track in 2016 with these tips from a Colorado Springs bankruptcy attorney.

    Nail down your necessary expenses – Figure out exactly what you are spending to cover your living expenses and current debts each month. This is an essential step to reigning in debt and getting finances back on track because it will give you a clear idea of what you need to earn to stay afloat (instead of going into further debt just to meet your essential needs).

  2. Cut back on your spending where you can – As you evaluate your monthly expenses and spending, take a critical look at where you are spending money on non-essential items. Figure out if there is anywhere you can reduce this spending – or may be able to make some temporary cutbacks until your finances are in better shape. Some ideas can include carpooling (to reduce your spending on gas), foregoing cable for a while, etc.
  3. Get in the habit of contributing to your savings – If you are not regularly contributing to your savings, 2016 should be the year you make this a habit. Consider thinking of this contribution as another essential bill you have to cover. If you have a reliable income, it can also be smart to set up automatic transfers to your savings so that you don’t forget to make this investment. Having a savings to fall back on can be crucial to avoiding more debt if or when sudden expenses arise.
  4. Make a plan for aggressively paying down debt – The best plan will be one that appropriately prioritizes your debt, with the most expensive debts (i.e., those with the highest interest rates) set as priorities for repayment first. With a debt repayment plan in place, you can figure out which debts to pay down more aggressively first, saving you money overall as you work towards becoming debt free.
  5. Know when to get professional help – Despite your best intentions to get your finances on track in the New Year, you never know what the future holds – and things you don’t plan for (like an illness or job loss) can end up sabotaging your work to get out of debt. If you find that you are not making the progress you should be or that your debt is getting worse, reaching out for professional help can be the best step to take before wage garnishments, foreclosures or repossessions start happening.

Contact a Colorado Springs Bankruptcy Attorney at the Law Office of Jon B. Clarke, P.C.

Are you struggling with debt and ready for a financial fresh start? If so, it’s time to contact a trusted Colorado Springs bankruptcy attorney at the Law Office of Jon B. Clarke, P.C.

Call (303) 779-0600 or email us using the contact form on this page. We also encourage you to complete our Business or Consumer Debtor Analysis Form so that we can provide you with professional advice that is as specific and helpful as possible.

From our offices based in Denver and Greenwood Village, we provide people throughout Colorado with the highest quality debt relief legal services.

Categories: Debt, Financial Tips