The new year is when people make all sorts of commitments to better themselves financially. However, if you’ve set your sights too high and come up short time and again, it can be difficult to consider realistic goals. Nevertheless, here are five financial resolutions anyone can keep.
Evaluate Your Financial Health
Do you know your net worth? That’s the amount of your assets minus liabilities. Once you calculate this figure, you’ll have a clear picture of where you stand and how to outline achievable & realistic resolutions. It’ll also provide insight into monetary shortcomings and where you can make improvements.
With free online & mobile banking from America First, you can link all your accounts to see your net worth and track progress. Another simple step is determining your credit score, giving you an understanding of your borrowing power and how to change for the better. Review your FICO® Score when you log in to online banking. Set up calendar reminders to check it quarterly.
Specifically Spend Less
Spending less by itself is too general. Pick something specific to cut back on. Maybe you can brew your morning coffee at home instead of grabbing one on the way to work. Or perhaps you could designate two times a week as leftover days, using the food you have instead of eating out. After all, little cuts like these can turn into big savings.
Start a Saving Habit
Speaking of saving, commit to putting a specified amount away every month; it doesn’t have to be much. Determine a specific time for deposits, such as every payday, so you don’t forget and develop this healthy habit. You could also open dedicated savings at America First, which automatically transfers the money for you. Or, if you don’t have a retirement fund yet, you can start an IRA and plan for the future.
Don’t just say you want to pay off debt this year. Make it a goal to get your credit card down to a zero balance each month, for example, or resolve to put $50 extra toward your car payment. Removing a debt that’s hanging over your head is one of the most rewarding feelings you can have.
Rewards are a big motivator, but they’re not just for significant milestones. Instead of waiting until your house is paid off, celebrate when your mortgage is under $100,000. Incentives also shouldn’t set you back financially, like blowing emergency cash on a fancy dinner. Be smart when you treat yourself for a job well done.