Happy New Year! A new year is a great time to start fresh and look forward to the future. Many of us are making resolutions to make changes for the better. Why not start with your financial goals? Think about what mistakes you’ve made over the past year and bumps in the road you might have come across. What do you wish you would have done differently? What would you like to change? What are you hoping to achieve in the upcoming months? Check out a few ideas below for financial resolutions to make this year, and how to keep them…
1. Get rid of your debt. This could be one of the best decisions you make all year! The longer you have a balance, the more interest you’ll gain, and you’ll essentially end up paying back more than you spent in the first place. Dedicate a chunk of your paycheck to paying down this debt, and contribute as much “extra” money as you can. Cut out any unnecessary spending if you need to in order to help reach this goal faster!
2. Build up your savings. It’s important to keep money set aside for any emergencies that may arise to avoid digging yourself into a debt hole. Saving is also great for setting smaller goals for yourself (i.e. saving for a vacation, a special purchase, etc.). Instead of making a mental promise to do this, go ahead and make it happen! Set up your bank account to automatically deposit a small amount of each paycheck into an account where you’re less likely to spend it. Only use that money for its intended purpose to make sure you stay on track!
3. Get organized. Keeping a budget is a great way to see where your money is going. You’re less likely to overspend when you allocate where your funds go each month. The more specific you can be, the better! You’ll be able to save more and spend less, and your money will ultimately go to where it matters the most.
4. Measure your progress. Keep track of where you are in relation to where you want to be. Set milestones for yourself along the way to keep yourself motivated and on track. When you meet these smaller milestones, go ahead and celebrate your hard work! You’re more likely to stay on track if you treat yourself every once in a while.
5. Work with an accountability partner. Check in with a friend that has similar goals in mind. This person should be dependable, supportive, and available. It can often be easier to keep a promise or stick to a goal when you’re not strictly depending on self-discipline. There’s nothing like a little peer pressure to keep you on-track!
6. Start small and slow, if you need to. Change doesn’t happen overnight. Take small steps to work towards your end goal, and little changes will turn into bigger ones! Before you know it, your old bad habits will be out the window, and you’ll be well on your way to financial success.
What changes are you hoping to make this coming year? What are some financial goals that you’re working toward?