Prairie State Wire

Comptroller Susana Mendoza is encouraging families to use the new year as an opportunity to get their finances in order. "The beginning of a new year is the perfect time to review your finances and set goals for savings, managing debt and planning for the future," says Comptroller Mendoza. She emphasizes that analyzing income and expenses could be crucial for financial decisions such as family vacations or saving for college education.

Mendoza suggests several steps to improve financial stability. She advises setting aside money for emergencies, similar to how the Illinois Office of Comptroller builds its Rainy Day Fund. Families should aim to save three to six months' worth of expenses, but starting with one month is a practical goal. Automatic transfers from paychecks into savings accounts can facilitate this process.

A thorough review of spending habits can also identify areas where cutbacks are possible, such as unused subscriptions or frequent purchases like expensive coffee drinks. Mendoza encourages facing debt directly by either paying off smaller amounts first or targeting debts with high-interest rates.

Additional recommendations include reviewing credit reports for accuracy and signs of identity theft, monitoring credit scores, and avoiding interest charges on credit card purchases by paying them off monthly. For those without checking accounts, Mendoza highlights the Bank On Illinois program which provides safe and affordable banking options.

"Think about some of these tips and make reasonable goals," adds Comptroller Mendoza. "Small successes can help inspire you to tackle larger concerns hanging over your head, like student loan debt or building up a savings account."