5 things to plan on doing with your money in 2018

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It's understandable if you drifted off course financially during the last couple months of the year.

However, you don't want bad money habits to follow you into the New Year.

If your finances have slipped, it's time to get back on track for 2018 and devise a plan to tackle your debt efficiently and effectively. Take a step back and evaluate your finances before the clock strikes 12 on December 31.

Here are some tips that can help you refresh your finances and stay motivated in the New Year.

1. Review your finances

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Take a look at your overall finances and consider setting both short-term and long-term goals. Confused about where to start? You may want to begin by obtaining a free copy of your credit report at Credit.com. Through Credit.com, you can request reports from all three of the major nationwide credit bureaus: Equifax, Experian and TransUnion.

Since you might have been using your credit cards often during your holiday shopping, be sure to check your credit report for any irregularities. Fraud and identity theft skyrocket during the holiday season. While you are checking your credit report, you also might want to check your credit score. If you are using more than 30% of your credit cards, you may see a slight drop in your score in the post-holiday season. While credit scores can fluctuate slightly from time to time, it's important to recognize when a deep drop occurs so you can find the problem and resolve it as soon as possible.

 

2. Set goals and make a plan

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Goals give us something to look forward to and work toward. Make a list of all the financial goals you plan to achieve in the next 12 months or so. Establish a payment strategy that works best to tackle not only your post-holiday debt, but also your overall debt. Consider making a list of all of your debts (secure and unsecure) and devise a plan on how to get them down.

Ask yourself what your short-term and long-term goals are. You might be looking to save up for a wedding, for retirement planning, or for your student loans. When it comes to loans, consider paying more than the minimum and making payments twice each month to help tackle your debt more efficiently. If you think you won't be able to tackle all of your debt at once, focus on the highest-interest rate debt first before you work on the rest.

3. Stay motivated

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You may be stressed out from your financial situation. Stress can be very overwhelming, especially when it's money related. Try to write down all of the reasons why you are stressed out. Focus on two to three financial problems or financial stress points and write down ways you may be able to solve that issue.

For example, you could write the following:

"I am stressed because I keep missing my credit card bill and now I am in debt from the late fees.

Solution: Maybe I can set a reminder on my phone or sign up for automatic payments so I don't forget next time.

Solution: Since I'm deep in debt now, maybe I will put extra money towards my monthly payments instead of just paying the minimum."

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