Mendoza offers financial tips to start new year

SPRINGFIELD – Alongside diet and fitness resolutions, households should consider kicking off 2024 with a solid fiscal plan.

“The beginning of a new year is the perfect time to review your finances and set goals for savings, managing debt and planning for the future,” Comptroller Susana Mendoza said in a news release. “A thorough analysis of income and expenses may mean the difference between taking the next big family vacation or saving for your child’s college education.”

Here are some things to think about:

• Sock away some money in case of emergencies. Just like the Illinois Office of Comptroller is working to build up the state’s Rainy-Day Fund, families need some cash on hand for things such as unexpected home and auto repairs, losing a job or costly medical bills. It’s recommended that you have three to six months of expenses saved up, but if that’s too big of an undertaking, start with one month of savings. One trick that will help is having a portion of your paycheck automatically put into your savings account. Think of it like a monthly bill that is due at the same time each month. Even better, find a savings account that earns interest.

• Really review your spending. Is there anywhere you can cut back? Maybe a monthly streaming subscription you forgot about, a gym membership you don’t use or daily trips for expensive lattes.

• Review your debt. That can be scary but it’s time to face it head on. Think about what will motivate you – paying off smaller amounts to get that feeling of accomplishment or tackling debt with the highest interest rates.

Other tips include:

• Review your credit report. Make sure it’s accurate and report any signs of identity theft. That may include new lines of credit that you did not open or authorize. You also can sign up for credit alerts/identity theft protection.

• Check your credit score and see which areas you need to work on to get that number higher. A score below 670 is considered just “fair.”

• If you make purchases with a credit card, try to pay it off each month so you aren’t charged interest. Pay it on time to avoid late fees as well.

• For those who do not have a checking account, avoid cashing checks at places that may charge high fees. The Comptroller’s Bank On Illinois program offers safe and affordable checking or credit union accounts to get you started.

“Think about some of these tips and make reasonable goals. Small successes can help inspire you to tackle larger concerns hanging over your head like student loan debt or building up a savings account,” Mendoza said.