Stepping into a new year is the best time to reset your life, especially your finances. Start to think about those financial resolutions, debt relief plans, and financial stability now. An early start can lead to better finances for the year to come.
Why Do You Need to Think About Those Financial Resolutions?
The New Year brings a renewed opportunity to commit to financial resolutions that take into account the challenges or successes of the past year. You also need to set goals and make plans. Here are some tips on making financial resolutions.
- Organize your finances and see what areas need improvements. Look back at 2018, see where you can improve and reorganize your finances. Look at your income growth or decline, your credit card debt, etc.
- Identify a financial goal you’d like to achieve in 2019. Finances are complicated. So focus on a few important battles. Prioritize what matters most and set SMART goals.
- Set a budget for 2019. A budget is the foundation of all your finances. Setting a budget can be as simple as tweaking your existing budget or creating a new one altogether.
- Create and contribute to a retirement account, such as a 401(k). If you already have this in place, yay! If not reach out to your employer, evaluate your options and start now. Consider increasing contributions if possible.
- Start an emergency fund for unexpected expenses. Emergencies are inevitable. Plan for a financial buffer in case you are faced with one!
- Learn how to read your credit report and continue to check it for wrong information. This is your financial Bible! You can get a free credit report from each of the credit reporting agencies. Make sure you do this regularly.
- Set up a savings account. This is key when it comes to your financial resolutions. Build up the habit of saving via direct deposits into your savings account regularly.
- Pay off your credit card bill in full each month. This will help with getting out of debt faster. Pay off your credit card debt in full on time each month.