Financial Resolutions That Will Get You Back on Track This Year
It is always a good idea to set goals for the New Year. Some people make resolutions, and others make goals, but they all want to be more efficient and productive with their money. The keyword here is “financial.” When setting these goals, it is always essential to keep them within your means. You want to ride that fine line between being enough and not overdoing it. Here are some financial resolutions you might want to consider for 2023.
Make a Budget and Stick To It!
You might be surprised at how many people do not create a budget for their money. When you spend your money without any concern about where it is going, it can get you into deep trouble very quickly. Instead, create a monthly plan to use your resources effectively and efficiently. This can make a huge difference in your life over time, especially if you are working to achieve something important, like getting out of debt.
Track Your Spending Habits
For those of you who have been keeping track of your spending, as well as those who have never even considered it as an option, tracking your spending habits is a great way to see where the money goes. When you do this regularly, say once or twice a month, you can figure out one of two things: where you can make cuts or where you can make additional funds. Tracking your spending will help with budgeting, but it will also give you insight into what you are doing with your money and how to do it better.
Cut Back on Impulse Purchases
When you cut back on impulse purchases, you can save yourself a lot of money. People purchase many things on a whim. For example, going out to lunch with coworkers every day because your brain is fried from the workday could be wasting hundreds of dollars a month. Instead of going out every day, maybe go out once a week. This will save you money and help you with your budgeting goals for the month.
Another trick to eliminate impulse purchases involves removing credit cards and debit cards from your wallet, purse, and digital wallets. If you don’t have the cash on you, you can’t make an unplanned purchase.
Pay Off Your Debt
The most significant financial resolution for any person should be to pay off their debt. This is the number one goal of anyone with credit card bills, car payments, student loans, etc. Setting up a systematic plan for paying off your debt can have immense benefits in getting rid of stress and gaining peace of mind. The sooner you pay off your debt, the better your life will be.
If you’ve rolled over payday loans into the new year, be sure to contact a payday loan consolidation company as more lenders are working with nonprofit credit counseling services to assist consumers in breaking the borrowing cycle.
Invest in Stocks and Bonds
Investing in stocks and bonds is a great way to make money, but it can also be a dangerous proposition if you do not know what you are doing. Before investing any money, take the time to learn how to invest in these areas. You might want to start with mutual funds, index funds, and treasury securities. This way, you will be able to make suitable investments with your money, and if your assets are successful, you will see a return on your investment that could help you achieve bigger goals. Set up an appointment with a financial advisor and ask questions.
Save for Retirement
Most people who start working do not save for retirement. Eventually, they find themselves in their golden years without enough money saved to retire in the way they may have hoped. You do not want this to be you, so start saving for your retirement today. When you get into the habit of doing it, you will find that it is easy and painless to save enough money for retirement every month.
Plan for Emergencies
Emergencies can happen to everyone. You might have a family member get very sick, or you could have your car break down and need to pay for it immediately. Making sure that you have an emergency fund is one of the most important things you can do in terms of financial resolutions. This will help you avoid using credit cards or loans if you have an emergency. It is also a great way to plan for your family’s future.
Once you reach a balance in your emergency savings that you’re comfortable with, continue to contribute to other savings goals like appliance and furniture replacement, vacations, and gift giving. Your future self will never regret your present contributions to savings.
Organization of any kind can save you time and money. When you are organized, you know where everything is, what you have, and where you need to be. Being organized can also help you with your budgeting goals because it is easier for you to know what you have and how much money you are spending on each thing.
Learn a New Skill
Having the ability to learn new things can boost your financial situation. By learning a new skill, you add to your marketability and value in the workplace. Not only that, but it can also open up other opportunities for you financially. For example, learning how to repair cars could work on cars and make more money than you did in your previous position.
There are many different things that you can learn, so take the time to think about what could benefit you and your future. Not only will your skills be more valuable, but you will also have the ability to make much more money than before.
Ditch Your Bad Habits
Bad habits are financially draining, and they should be eliminated as soon as possible. For example, smoking can be costly because buying cigarettes every day adds up over time. Other bad habits include eating out at restaurants or purchasing coffee daily. These things cost significant amounts of money over time, so you should try to break these habits as soon as possible.
Find a Side Hustle
If you find that your regular 9 to 5 job is not paying you enough money, then it might be time for you to think about finding a side hustle. This means you will do something outside of your main job to make more money or bring in extra cash when things are tight. You might even find that the side hustle is more enjoyable for you than your regular job, which can make it easy to get motivated and stay productive.
Cook at Home
Eating out at restaurants can be extremely expensive, but another option for you might be to cook your meals at home. This will save you money each week because you will not have to worry about buying groceries and cooking yourself. It is also a great way to ensure that you are getting healthy meals regularly.
As you can see, there are many financial resolutions that you should consider making for the new year. The main thing to remember is that even if you have not been successful with your past resolutions, it does not mean that they will not work for you now. All it takes is resolve and determination to achieve what you want in life, so take it one day at a time and try to make these resolutions happen to improve your financial situation.
Finny the Finance Bot says…
What are some good financial resolutions someone could make for the New Year?
Here are some good financial resolutions that someone could make for the new year:
- Create a budget: Develop a monthly budget that tracks your income and expenses, and stick to it as closely as possible.
- Pay off debt: Make a plan to pay off high-interest debt, such as credit card balances or personal loans.
- Save more: Set aside a portion of your income each month for emergency savings, long-term goals, and retirement.
- Invest: Consider investing in stocks, mutual funds, or other investments to grow your wealth over time.
- Improve credit: Review your credit report regularly and take steps to improve your credit score, such as paying bills on time and reducing debt.
- Spend wisely: Be mindful of your spending and prioritize purchases that align with your financial goals and values.
- Seek financial education: Learn about personal finance by reading books, attending workshops, or working with a financial advisor.
- Start an emergency fund: Aim to save three to six months’ worth of living expenses in case of unexpected events, such as job loss or medical bills.
- Automate savings: Consider using automatic transfer or payroll deduction to set aside money each month for savings and investment.
- Review and adjust: Review your progress regularly and adjust your financial plan as needed to stay on track and reach your goals.
Remember, the key to successful financial resolution is making a plan and sticking to it. Start with small, achievable steps and gradually work towards your larger financial goals.
The author generated Finny the Finance Bot’s text in part with GPT-3, OpenAI’s large-scale language-generation model. Upon generating draft language, the author reviewed, edited, and revised the language to their own liking and takes ultimate responsibility for the content of this publication.