With a new year comes new dreams, plans, and opportunities! Take some time to reflect on the past year to see how far you’ve come, and then look ahead to the coming year to brainstorm where you’d like to go. A resolution is just a fancy word for a goal. What do you hope to accomplish this year? What about financially? There are some common financial resolutions that we can all plan to work on in the coming year…
Save more money.
This is a simple resolution that many of us have - make more money! This means you could find ways to cut back on expenses and save or you find new ways to increase your income. Working with a financial professional will help you decide if it’s better for you to save or add based on your specific situation.
Improve credit score.
It may seem impossible, but it can be done. Improving your credit score requires consistency and patience. The best way to improve your credit score is simply by making your payments on time and paying more than the minimum. Be sure to watch your credit utilization, as this also plays a role in your overall credit score.
Pay off debt.
Ah, yes, we all dream of getting rid of our debt! The best way to tackle debt is one payment at a time. Over time, this debt will become smaller and smaller. Create a game plan for which debt to pay off first so you aren’t losing much on high interest loans.
Create & follow a budget.
There are many resources available to help you create a budget plan that works for you. You can DIY, utilize budgeting apps or programs, or work with a financial professional. Sticking with a budget requires discipline, and should be adjusted as major financial situations arise.
Start/increase emergency fund.
Everyone should have three to six months of expenses saved up. If you don’t yet have an emergency fund, create one this year and fund it a little bit every month (refer to your budget on the comfortable amount for your unique situation). If you already have an emergency fund, work on building it up.
Feel financially secure.
This is a simple resolution that requires a lot of other actions to make a reality. We all want to feel financially stable and secure - but how can you do that? For one, reference the other resolutions in this article for ways to improve your financial health, which in return, will improve your feelings of financial security.
Plan for a big purchase.
Do you plan to buy a new house? Or a car? Maybe you’re paying for your child’s education? If you plan to make a big purchase this year, your first step toward making that resolution a reality is to talk with a financial professional to plan accordingly for the purchase.
All of these resolutions can become a reality if you take the actions necessary! Working with a financial professional will also improve your chances of improving your financial well-being and accomplishing your goals over time.