New Years – it’s the most popular holiday of the year where people start to set goals and resolutions. While losing weight or getting fit tend to be the most popular resolutions, financial resolutions should make the list, too. Just like goals, resolutions will work best when they are specific. Saving more money or spending less aren’t bad resolutions, but the more specific you are, the higher your chances of achieving them. If you are serious about spending less money or becoming more saving savvy, here are 6 financial resolutions for the new year that you can stick to:
- Monitor your credit score quarterly. Many credit card companies allow you to view your credit score for free. You can also pull your credit report directly from credit bureaus. The sooner you uncover problems the better. And with the Equifax hack earlier this year, it’s important to know what is going on with your credit.
- Create a debt plan. If a debt has been lingering over your head this year, make a valiant effort to tackle it head-on in the new year. First, you have to find out just how much debt you have, then the type of debt and each one’s interest rate. Once you know this, you will be able to determine your options. We advise sitting down with one of our Member Advisors so that they can better assist in creating a plan that works for you and your lifestyle.
- Track your expenses. It’s easy to overspend when you aren’t physically seeing the money leave your pocket or your hands. The best part about tracking is that is trains your mind to be more conscious of your spending. Whether it’s an Excel spreadsheet or an app, knowing how much you are spending will help your budget.
- Automate your savings. You have to make saving money a priority. Be proactive by having a certain amount transfer from your bank account into your savings. It makes it easier to leave that money alone if you don’t see it or have easy access to it.
- Spend less with a cash diet. Once you’ve created your budget, you will know how much expendable money you have to work with every month. Limit yourself to spending only a certain amount of money per week or pay period. It may even be easier to withdraw that money out so that you can see the money you’re spending and prevent the temptation to use your credit or debit card.
- Sit down with a financial expert as often as you need to. Our Member Advisors are knowledgeable about various options and can suggest certain steps you can take to reach your financial resolutions. Laying everything out, even the things you shy away from will make taking the steps easier.
Every goal needs a clear checklist, and with these six in place, you’ll be able to reflect back this time next year with a smile on your face. Don’t let your finances overwhelm you because there is a light at the end of the tunnel. Come into one of our branches today to meet with a Member Advisor and plan for a successful year ahead.