Citizens Bank offers year-end financial tips

To help consumers enter the New Year with a better understanding of their spending habits and overall finances, Citizens Bank is encouraging consumers to take the time now to establish their savings goals and to consider some simple, but effective budgeting strategies as part of their financial planning for 2015.

“The end of the year is the perfect time for consumers to review their finances and to conduct a simple financial tune-up that can help them recognize any patterns they want to change or new opportunities to save in the year ahead,” said John Rosenfeld, Head of Everyday Banking for Citizens. “We encourage consumers to take the time to review their budgets and start thinking about their financial goals for 2015. Doing so can help them come out of the holidays with a plan, and pay dividends in the New Year.”

To help consumers manage their money, prevent the accumulation of debt and make sure they are best positioned for the New Year, Citizens Bank 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% 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.