Financial Resolutions to Kick Start the New Year
New Year’s is a time to make some big changes and set some new goals. Every individual has a personal goal they'll try to accomplish during the new year. But many people may not think about financial goals, even if they may have some financial problems. They may, instead, try starting a new diet, looking for a new career, or even volunteering for a nonprofit.
Setting a goal and making some changes with your finances and spending habits could take away some pressing stressors that you may have. Here are some financial New Year’s resolutions to help you stay stress-free while also keeping yourself organized!
Keep Up with Your Credit Score
Many times, credit score is a forgotten piece of our finances. Keeping on top of your score is an absolute must. It shows you some key information about your relationship with your debts and whether they are under control. Knowing how you are doing with your payments on your current debts is essential. Your credit score is a contributing factor when it comes to taking out a loan, purchasing a home or car, or opening a new credit card. There are countless websites available for you to obtain a free copy of your credit report. They give you your current score, while also providing a report of changes that have happened within a given period of time.
Create a Financial Journal
A new way that you can really increase your savings is by making a financial journal. You don't need to purchase an expensive planner for this. You can use an old copybook you have lying around or even some loose sheets of paper. Start by writing down the dates that you get paid, and approximately how much you will be receiving in each check. This will allow you to see what you have in your bank account. Write down how much you spent each day at the end of the day and what you spent it on. This will allow you to see where the bulk of your cash is going. You can also keep track of when your bills are due, and how much they are and keep you organized while you begin your savings journey.
Use Your Savings Account
Another helpful way to keep on top of your savings is to use your savings account. Many of us get direct deposit into our checking account and never actually utilize our savings. Each week, or whenever you receive your paychecks, place a designated amount into your savings account. This will prevent you from touching money that you need for upcoming bills and expenses. You can also start to build some savings to use in the future for emergencies, vacations, etc.
Money Diet
As you probably know, many people start the new year with a new diet. It's a very popular New Year’s Resolution to kick your bad eating habits. But they can actually extend your finances as well. So many people have a problem with overspending but may not think to make their New Year’s resolution to cut back on the credit card swiping.
If this applies to you, make your resolution to go on a money diet. This means limiting your spending each month and making some serious cutbacks. If you typically spend $100 per month on shopping, try $50 this year. You can even try limiting the number of times you use your credit card to prevent excess debt. These small changes will help in a big way at the end of each month when it comes to your savings.
If you find that these tips aren’t making a big enough change when it comes to your debt, you may want to look into taking out a loan. For example, payday loans can give you some extra cash without putting you into excessive debt. You can use this loan to pay off old credit cards to consolidate the debt and get rid of those pesky interest charges.
Happy New Year & Happy Savings!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.