Holiday expenses may be looming on your credit card bills, or perhaps your bank balance is a little lighter from the extra gifts exchanged with family and friends. You may also be among many who have set resolutions to reduce debt and grow your savings account this year, possibly for some larger items that have been sitting on your wish list.
No matter the reason for wanting to manage your finances, your BBB has several tips to help you set goals and resolutions for 2025:
Set clear financial goals. A great first step is to define your specific goals, like building an emergency fund, paying off debt or saving for a vacation or retirement. Clear goals provide motivation and direction for financial choices.
Inventory your credit cards. Credit cards can carry high-interest rates, which can cause you to spend quite a bit of excess money over time. You may have initially secured a card at a high interest rate to establish credit and have since qualified for a lower rate — but you might not get it without asking. Now is a great time to reach out to your credit card companies to see if you qualify for better rates.
Also, when it comes to considering securing any new credit cards, BBB recommends that you research the financial institution where the credit card is held at BBB.org first. Read the terms of a card offer carefully. If you don’t find them, request a copy before you make a commitment. Check for any penalties for missed or delayed payments and the details on introductory rates. These could change significantly when the promotional period ends.
If you have multiple cards with balances, decide which debt-paying strategy is best for you. Some experts recommend paying off cards with the highest interest rates first. Others recommend paying off cards with the smallest balances first. Check on the benefit of making multiple payments during the month.
Avoid losing money to unethical businesses or scams. When making a purchase or choosing a business for any products or services, check with BBB. Making careful decisions now can save time, money and headaches later.
Online retail scams continue to rank at the top of reports to BBB Scam Tracker, so in addition to researching companies at BBB.org, make a resolution to check BBB Scam Tracker regularly to see what scams are happening in the area and online.
Revisit subscriptions and memberships. Review all of your current recurring payments and cancel any services that are no longer needed. These small adjustments can add up over the year.
Plan for large expenses. List out potential major purchases or expenses (like vacations, home repairs) and start setting aside funds monthly to avoid future financial strain.
Take advantage of free tools. Many online tools can help manage and reduce debt. Be sure to check each one with BBB before taking advantage of them to be sure there are no concerns with their services.
If a BBB profile isn’t found, use a website registration search service, such as Go Daddy Whois, to verify how long a website has been active. If they’ve just popped up, it’s best to stay clear of them until they’ve established a positive track record.
Start budgeting. Once you’ve taken the steps above, you’ll want to create a written budget. Tracking spending is one of the best ways to save money and stop spending more than what is earned. Our article “10 things to help you create a budget,” outlines each step we recommend in creating a budget that’s best for you.
It starts with evaluating how much debt you have so you’ll have an accurate picture of your current financial status as a starting point. You’ll also want to note the difference between fixed expenses, needs and wants.
Find ways to save money, especially in reviewing what you have in the “wants” column. Switching to your own home-brewed coffee instead of splurging on pricey lattes or whipping up dinner in your kitchen instead of dialing up takeout can turn small habits into big wins in the battle against debt.
If you have debt, we recommend you include repayment goals in your budget as well. When possible, factor in retirement and emergency savings. You can also look at ways to generate alternate income, such as selling unneeded items.
FESTIVE FOREST WINNERS
Thank you to the nearly 1,500 residents who voted for your favorite trees at this year’s Festive Forest. We think all of our sponsors did a phenomenal job in decorating their trees, but three trees earned the top votes from our community:
First Place: Camp Lookout’s Marshmallow Roast
Second Place: Fortech’s Video Tree
Third Place: Nacs/MedSrv’s Grinch Tree
Festive Forest was co-hosted by BBB, EPB, Chattanooga’s Parks & Outdoors and BlueCross BlueShield of Tennessee. A special thank you goes to Chattanooga Coca Cola Bottling Co. for providing our signs, and we truly appreciate all of our tree sponsors for helping us bring holiday cheer to our community.
The event will return on Nov. 26. For more information, including the cost and qualification for tree sponsorship, please visit festiveforest.org.
Michele Mason is president of the Better Business Bureau in Chattanooga.
Staff photo / Chattanooga Better Business Bureau President Michele Mason