With the start of a new year, comes the promise of a new you. You think of all the changes you plan to make in your life to ensure that this year is better than the last. Changes like losing weight, eating better, finding a new hobby. More often than not these resolutions fall to the wayside after the first week or so of January. However, if you’re committed to a fresh financial start this year, here are six financial resolutions that are healthy for any wallet.
Identify your Priorities
It can be easy to lose sight of your priorities throughout the year when dealing with the stress of everyday life, but identifying the things that mean the most to you will help you plan where your money is going. Think of your priorities like a pyramid, the base should be things like food, shelter, clothing and other necessities for you and your family. The second tier would be things that are important in your life, but you don’t necessarily need to survive and so on and so forth. No one’s priorities are the same, but your spending should happen from the base up. Make sure you are paying your rent before buying unnecessary, expensive jewelry, for example.
Communicate with your Family
In every aspect of your relationship with your spouse, significant other, etc., communication is a key factor. Discussing finances may seem like a taboo subject, but it is important that you both understand how your money is going to work. It is also important, if you have children, to instill in them the value of money and smart financial habits. They will carry these lessons into adulthood.
Set a Budget
After identifying your priorities and discussing them with your family, set your financial goals for the year. Take into account all of your income and expenses and set a budget. Making one will be the easy part, sticking to it is harder, but the rewards that come from maintaining your budget are well worth the hard work. Just make sure you are measuring your success regularly to make sure you stay on track.
Reassess your Spending
Where are you spending money now that you could minimize in the future? How could your use of credit cards change in the future? Questions like these can help you figure out how you are spending your money and where you can cut back to save more in the future. Look at the credit cards you have. If you have more than a couple, see if you can trim that number down just to the ones that work best for you.
Build your Savings
Saving for emergencies, retirement, college, etc. are all crucial steps in your financial life. If you don’t currently have any savings, it is perfectly fine to start small and put change away until you have a healthy emergency fund built, just in case you get caught off guard by an unexpected medical or repair bill. Don’t wait until the last minute to add to your retirement savings either. Starting earlier can lead to an easier life once you reach retirement age.
Pay off your Debt
Review your current debt situation and assess your options. Is it possible to get them paid off a little at a time on your own or do you think it may be time for a fresh start? Make 2018 your year to get caught up on your bills and not incur any more consumer debt. However, if you find yourself in a sticky situation, our team members are always here to help.
Hopefully with this handful of tips you can be well on your way to a great year. Free to let us know your personal financial resolutions for the year. We stand behind you 100%! Also, don’t forget that tax season is coming up and your refund, if used wisely, could be very beneficial to getting your fresh start.
