7 Financial Resolutions to Make for the New Year
For a lot of people, slimming down their waistlines is a fairly common New Year’s resolution. But we want to make sure your wallet is the one thing that doesn’t slim down in the New Year!
These next few months provide the perfect opportunity for you to meet and exceed your personal financial goals. Whether you’re in a little or a lot of debt, New Era Debt Solutions offers these 7 simple ways you can maximize your profits the new year:
1. Change the Meaning of “Payday”
It’s hard not to look forward to that one day when your bank goes “ka-ching!”. For some people, it’s tempting to use a recently earned paycheck to treat themselves for working hard. Instead of spending senselessly, pay off your bills the same day you get your check. This will help you prioritize your spending and lessen the chance of missing an important payment deadline.
2. Commit to Cashflow Improvement
Living paycheck-to-paycheck is no way to truly live. Evaluate where you fell short this year and determine ways you can increase the green in your bank account. If you are dissatisfied in your job or are hoping to find a better-paying career, today’s the day to start looking. If you’re happy at your job, see if you can work extra hours or talk to your boss about a well-deserved raise.
You can also evaluate what you need in your life and what you don’t. Downsizing your house, car, or opting for cheaper health insurance plans might be options for you.
3. Close the Accounts You Don’t Need
How many credit/checking accounts do you have? There’s a good chance you’re racking up fees for every account you open. Evaluate which ones you actually need and close down the rest.
4. Ensure Your Future
If you aren’t already, vow to build an emergency fund over the next year. Allocate a minimum of $20-30 from each paycheck into a rainy-day fund. You never know if and when you’ll need those extra funds in the case of a car breakdown or medical emergency.
5. Make a Better Budget
Look over your books from last year. At any point, were you being unrealistic or impractical with how much you set aside for housing payments, groceries, or extracurricular activities? Line up your budget with your current goals and income.
6. Resolve to Improve Your Credit Score
Did you know that as of September 2018, U.S. families have generated more than $1 trillion in credit card debt? That being said, there’s probably room for improvement in your credit score. Watch your credit card balances like a hawk and pay off your debts as quickly as you can (start with the debts that have the highest interest rates). Learn from your past mistakes, but don’t let it discourage from forging a better, brighter financial future!
7. Focus on YOU
Your health and mental well-being should be your number-one priorities. After all the less stressed and ill you are, the less you’ll need to pay for doctors’ visits. But there is definitely something to be said for those who value their personal happiness as much as wise financial choices.
Financial Resolution FAQs for the New Year
Is it realistic to aim for becoming debt-free within a year?
While becoming completely debt-free within a year might be challenging, depending on your debt level, it’s certainly possible to make significant progress. New Era Debt Solutions can help you set realistic goals and develop a tailored plan to maximize your debt reduction within a one-year timeline.
How important is budgeting in achieving my financial resolutions?
Budgeting is a crucial part of achieving any financial resolution. It helps you understand your spending patterns, identify areas for cost-cutting, and allocate funds more effectively towards debt repayment. New Era Debt Solutions offers tools and guidance to help you create and maintain a budget that works for you.
What strategies can I employ to stick to my financial resolutions throughout the year?
Staying committed to your financial resolutions requires both discipline and practical strategies. Here are some tips:
- Set Clear and Achievable Goals: Break down your larger financial resolutions into smaller, manageable objectives. For instance, if your goal is to reduce debt, start by targeting one credit card or loan at a time.
- Use Budgeting Tools: Utilize budgeting apps or spreadsheets to track your spending and stay on course. New Era Debt Solutions offers resources and tools that can help in this area.
- Regular Check-ins: Schedule monthly check-ins to review your budget,track your progress, and adjust your plan as needed. This helps in keeping your resolutions top-of-mind.
- Reduce Expenses: Identify areas where you can cut back, such as dining out, subscriptions, or luxury items, and redirect those funds towards debt repayment.
- Increase Income: Consider ways to boost your income, like taking on freelance work, selling unused items, or exploring a side hustle.
- Stay Motivated: Remind yourself of the benefits of achieving your financial goals, like reduced stress and greater financial freedom, to stay motivated.
- Seek Professional Advice: Don’t hesitate to reach out to financial advisors at New Era Debt Solutions for personalized advice and encouragement.
New Era Debt Solutions has settled over a quarter of a billion dollars of debt since 1999 and wants you to be our next success story. If you need assistance in achieving financial freedom, contact one of our friendly counselors at New Era Debt Solutions to learn more about finding the debt relief option that best fits your needs and budget. Our counselors are with you every step of the way.