Save more, spend less. It's a common New Year's resolution, but it can be difficult, especially after the hardships many faced in 2020.
ABC15 spoke with a financial expert about how to set realistic financial goals for 2021.
Scott Roelofs, Certified Financial Advisor with RCG Valuation and Monetization, says credit card debt is one of the biggest challenges families are facing. He says if you have the means to do so, take what the minimum payment is and add an additional half to that. For example, if you're paying $100 a month, set it to auto-pay at $150.
He says, look at what you're spending every month and cut down on items that you may have forgotten about, like subscription services or an unused gym membership.
Finally, he says change your mindset when it comes to your finances.
“You only get to keep the money that’s left over after all of your spending," Roelofs said. "When you’re thinking about how much money you make, that number is almost irrelevant. The only number that matters is the amount of money minus what you spend. If you think of your world as, 'what do I have left?' It will actually help you with a lot of decision making."
He says if you're looking for ways to get money back, like through cash-back credit cards or rebates, be careful.
“If you’re getting a giant rebate back that also means you spent a lot of money with them," he said. "The same thing with the credit cards is you may be getting the points, but if you don’t pay that off every month then they’re going to get the interest and they’ve set that up for them to win."