Can March Madness Lower Your Debt?
Lowering Debt in March can be a slam dunk.
We wanted to pass this information on to you. Since if we didn’t review this money-saving tip, someone might call “foul”. Okay, no more basketball puns. This month we have a Financial Tip for you, call it a “two-pointer” (last one we promise 😊)
What are two of the best months to improve your finances in 2023? March and September. Both months provide many of us (those paid every two weeks) with a great chance to lower debt or build savings. These are the two months in 2023 when we will get THREE paychecks. Without a plan, we just relish in seeming to have a bit more wiggle room in our budget. However, having a plan can have a positive impact on our finances.
Rather than looking at it as one “extra check,” consider setting aside 1/3 from each of your three checks this month. Take this amount and make an extra payment toward your credit card debt on March 3rd. Then add 1/3 of your March 17th check to your savings account. And then finally, on March 31st, either reduce more debt or build savings (your call). If you are a homeowner, this might be a good month to take the funds from the “extra check” to pay down your principal. If Homewsie is your loan servicer, you can mail or drop off a check. Make sure to note your loan number on the check and write “toward principal.”
For more Financial Tips, check out our Financial Fitness for Life class. We’re back to in-person classes in both Albuquerque and Santa Fe (also available as an online course).