3 strategies to help get your much-needed money back this year

Welcome back to Money Made Easy, where we focus on simple ways to manage your money and save money. In the final episode of the series, Select CNBC Shareholder and financial advisor Christine Merrick She guides us through the best tips for rethinking how you manage your money in 2023.

Check out the full interview featured on TODAY in the video below and read on to see some of Merrick’s best strategies.

a Personal Finance Reboot It requires you to revisit your spending habits last year. Most credit cards will offer year-end summaries that aggregate all of your past purchases by month and category. Merrick recommends collecting these statements and using them to assess where you should adjust your spending.

“I want you to look and see what you did in 2022 — where you spent most of your money, where the allowance went,” she says. “This is where you can start to understand the bigger picture of how to fix this.”

You can take the old fashioned approach by looking at the printed statements line by line. But budgeting apps also automate the process of determining where your money goes and where you can cut back. Select CNBC Rank the Mint The budget app as the best overall free option of 2023 for its ability to customize expense categories and savings goals. Another free app designed for beginners looking to plan their spending is Good budget.

Paying off debt is a common financial solution people take for the new year. During the holiday season, shoppers often spend more money than usual, which leads to a spike in sales unexpected debts. Select CNBC Recently mentioned The average amount of holiday debt Americans took on in 2022 increased 24% to $1,549.

“I want you to look forward to making sure your credit cards aren’t in trouble,” says Merrick. “[Make sure] You have not defaulted. Make sure you pay on time.”

This year, taking care of that debt may seem more difficult due to higher interest rates. One of the strategies Merrick recommends is: The religion of monotheism, which is the process of obtaining a new loan to pay off multiple existing debts. The goal is to combine multiple payments into a single loan at a lower interest rate, making debt easier to manage and potentially saving money on interest payments in the long run.

CNBC Select ranked LightStream Personal Credits As one of the best debt consolidation loans due to the repayment terms ranging from 24 to 144 months. In addition, eligible borrowers can apply for up to $100,000, and this lender does not charge origination fees, early repayment fees, or late fees.

Keep in mind that you will need Good credit (or better) to qualify for a LightStream Personal Loan. For those with fair or average credit, we recommend looking Upstart personal loans.

Remember to weigh factors such as late fees and repayment terms before choosing a debt consolidation lender. Additionally, you should keep in mind that consolidation does not make debt disappear, it just moves it from multiple sources to one.

Another smart strategy for paying off debt is to use a balance transfer card with a 0% intro APR period. You can transfer an existing card balance to a new credit card, eg Wells Fargo Reflect® Card or the Citi® Diamond Preferred® Card, and make payments without charging interest for a limited period of time. This should help you pay off the balance faster, since your money is going toward the principal, not the interest.

As with debt consolidation loans, you should do your homework before choosing a balance transfer credit card. Weigh factors such as fees, repayment terms, length of initial APR, annual fees, and interest rates before submitting an application.

Set clear financial goals It gives you an idea of ​​where to prioritize. To reach these goals, your plan could include a combination of adjusting your spending, increasing your income, or finding new ways to invest your money.

To bring a little fun into the process, Merrick encourages people to find an accountability partner to share in the excitement of working toward a goal. Each month, you suggest setting aside a specific amount, such as 10% of your salary, and setting aside it for that specific purpose.

“If you know, ‘I have to save this much money every month,’ you just have to do it, don’t think about it, and live off the rest,” says Merrick.

for short term financial goals, High yield savings accounts It can help you grow your money by earning a much better return than a traditional savings account. the Marcus by Goldman Sachs Online High Yield Savings It’s a solid option because it doesn’t charge overdraft or excess transaction fees. Automate your transfers to a savings account It can help with the process, making it easier and helping you see that you’re constantly growing your account.

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