Citizens looks to help with savings goals

Entering into the New Year, Citizens Bank is sharing tips on how consumers can establish their savings goals with some simple budgeting strategies for 2015.
John Rosenfeld, head of Citizens’ Everyday Banking, says the New Year is a perfect time for consumers to review finances and fine-tune practices.
“We encourage consumers to take the time to review their budgets and start thinking about their financial goals for 2015,” Rosenfeld said. “Doing so can help them come out of the holidays with a plan, and pay dividends in the New Year.”
Citizens suggests the following:
1. Review your spending in 2014 and adjust your 2015 budget – Budgeting is not just about saving money. It also is about taking control of your spending and gaining a better understanding of where your money is going. Small, but recurring expenses like your morning latte can add-up. Compare your monthly income to what you’re spending every month. Adjust your 2015 budget accordingly so you start the New Year with realistic goals and expectations.
2. Make a plan to pay off holiday spending debt – Many people use credit cards for holiday spending to earn cashback or rewards points, but that really only makes sense if you pay it off quickly. If you paid for your holiday costs with a credit card (e.g. gifts or travel), set a plan to pay off your debt by a specific date, such as Valentine’s Day. This will force you to budget for the costs in the first months of the year, ensure you don’t pay interest on the credit debt, and clear off the debt soon so it’s not a holiday debt hangover for months on end.
3. Max out your retirement savings – There’s not much time left – contribute as much as possible to your 401(k) before December 31 – most worker can contribute up to $17,500. To make the most of your IRA, you have until you file your tax return in 2015 to max out your contribution, which is set at $5,500, with an extra $1,000 “catch-up” option for people over the age of 50.
4. Refinance or consolidate your student loans – A lot of people don’t realize that you can refinance a student loan just like a mortgage, even if it was a Federal Student loan. Refinancing can help you lock in a lower interest rate and save money going into 2015. Consolidating your loans will make it easier to keep track of your payments and also perhaps get a lower interest rate.
6. Review your credit card interest rates – If you’re still planning to carry a high amount of credit card debt into 2015, check for end of year specials that allow you to transfer credit card balances with low fees and offer 0 percent interest for the first year. A few banks may even waive the balance transfer fee (typically 3 percent). Look for lower credit card rates and consider consolidating high balances to the card with the best rate. It’s a quick and easy way to save on interest while you pay off the debt. If you are carrying balances from holiday shopping, make paying them down as quickly as possible a priority.
7. Seek advice – Talk with your banker, financial advisor or accountant for additional suggestions. If you’ve never met with a financial advisor, now is a great time of year to make that first appointment. Many offer free initial consultations to help determine if this option is right for you.

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