Tips

6 Financial Tips to Get on the Right Track This New Year

by Rachael Ray Show Staff 9:00 AM, January 7, 2016

Rachael Ray Show

Aired January 7, 2016

If you are hoping to get your finances in order for the new year, you are not alone! Learnvest CEO and financial expert Alexa von Tobel has 6 tips that will put you on the path to financial freedom!

Tip 1: Cut Unused Subscriptions

Financial expert Alexa von Tobel reveals that by cutting subscriptions like a gym membership and cable TV, you can save a big chunk of change.

Tip 2: Cut Down on Wasteful Electricity Use

Plug all of your appliances into a power strip, and turn it off when you’re not using them, so they’re not sucking electricity when they are not in use.

Tip 3: Freeze Your Credit Cards

Freeze your credit cards in a block of ice in the freezer so you only use them for true emergencies, and only use cash or checks so that you can truly stay within your budget.

Tip 4: Make Extra Payments on Your Credit Cards

Every month, pay the minimum on your credit cards, and then in the middle of the month, make an extra payment. You will save on interest and see your balance go down faster.

Tip 5: Follow the 50/20/30 Rule

When you get paid, 50 percent of your pay should go toward essentials, the next 20 percent should be put into savings, and 30 percent (or less) should go toward lifestyle, meaning entertainment and other non-essentials that enhance your quality of life.

Tip 6: The Best Way to Handle Student Loan Debt

Alexa calls Student Loans “good debt” and suggests talking to a financial expert to make a plan to pay it off faster and also consider a consolidation loan.

What financial area do you hope to improve upon in the New Year? Share below!