Financial Resolutions

Are you thinking, “New Year, New Me?” Committing to financial health and wellness is a great way to start the new year and will benefit you throughout your life. Here are a few tips to help you reach your financial goals in the new year:

Make a budget and stick with it

This advice is repeated so often because it works. Begin by tracking your spending. After a few weeks of tracking, look for trends in your spending. These trends help you identify how much income goes towards necessities (rent/mortgage, utilities, groceries), and where you can cut back (rarely-used subscriptions, eating out). Begin putting a portion of your income towards a savings goal and stick with it. Remember to take time every few days to compare your actual spending versus your planned spending.

Deal with any debt

Debt can be extremely stressful to deal with. The new year is a perfect time to evaluate ways to reduce what you owe. Debt should be factored into your budget and tracked, just like an electric bill. Contact your creditors to discuss your situation. They may be willing to put together a repayment plan. If you are carrying debt on multiple credit cards, consolidate your debt into a single payment and close the extra accounts. Addressing debt now can help put you on the path to financial success.

Shop around for services

Many times people stay with the company they find first, from internet providers to car insurance to cell phones. There is nothing wrong with loyalty, but the fact they have been your provider for years is not necessarily a good reason to stay with them. Shop around to see what other companies charge for similar services. You may find a better deal elsewhere. Keep in mind, cheaper is not always best. Make sure you are getting a similar quality or you are ok with a downgrade before switching.