With a debt repayment strategy in mind, these tools can help you solidify and strengthen your financial future.
1. SMART Goals
Research suggests that people who write down their goals have a better chance of meeting them. This is called the goal-setting theory.1 While a broad, generalized goal may seem like it’s more attainable, you should actually do the opposite. Specific, measurable goals, referred to as SMART goals, can help you establish a real benchmark for your successes while they also motivate you to succeed.
2. Your Budget
It’s much harder to live within your means if you have no idea what you can realistically afford. Even if you’ve made a budget previously, it’s helpful to revisit your allocations from time to time. While your unique financial situation will vary, budgeting experts suggest reverse budgeting or the 50-30-20 are reasonable to aim for. If you have room to save money or limit your expenses, tighten your budget in order to eliminate debt faster.
3. Personal Finance Apps
With the newest personal finance tools and apps, you don’t really have to do much in order to reap their benefits. While some apps like Mint are free, others like Monefy offer both a free and premium version. Specific apps will vary, but most function via direct integration from your banking app and allow you to set budgets, track spending and manage savings goals.
4. Your Credit Score
If you’re keeping track of your credit score throughout debt repayment, you may notice that your score has strengthened. Your credit score is an important financial health indicator that stays with you throughout your adult life. Regardless of your debts, it’s a good idea to regularly review your report for accuracy, and dispute any incorrect items as soon as you notice them.
1Redmond, B. F. (October 2, 2016). 6. Goal setting theory – PSYCH 484: Work attitudes and job motivation. Retrieved December 18, 2019, from https://wikispaces.psu.edu/display/PSYCH484/6.+Goal+Setting+Theory