Have you made your New Year’s resolutions yet? Don’t forget your financial resolutions!
A survey from Fidelity Investments found that over half of those who made resolutions last year now feel they are better off.
Here are some ideas for your financial resolutions:
1. Start a budget
This one’s a must if you want to get ahead. You can create a yearly and monthly budget to get a clear picture of where you need to be. We’ve made creating a budget easier for you with this worksheet.
2. Learn how much you really spend
Have you ever spent time looking at your transactions every month? If not, make that a habit this year. You can color code your transactions to identify how much is going to your home, food, entertainment, etc.
3. Start your emergency fund
We’ve talked about emergency funds before, and the amount you should save is debatable. If you don’t have one at all, make a goal to save $1,000, as that will help you in most emergency situations. Once you’ve paid off debt and accomplished some other goals, you can increase your emergency fund.
4. Identify your splurges
Do you buy coffee every day? Maybe it’s your morning coffee or maybe it’s going to your favorite fancy restaurant too often; we all have splurges. Pick one of yours to cut back on this year.
5. Make a long-term goal
Your long-term goal will depend on your lifestyle and family situation. It could be to save for college for you or your child, a luxury vacation or a down payment for a new car or home.
6. Pack your lunch
If you buy a lunch every day, you’d be surprised how quickly that adds up. Plan to pack your lunch most days of the week to cut this unnecessary expense. Bonus: it’s much easier to eat healthy when you plan your meals.
7. Go generic
Everyone has their favorite brands, but you don’t always need brand name products. From now on, pick one or two (or more) things on your grocery list to try generic.
8. Pay off your debt
If you’re carrying a credit card balance or some other loan, make a plan to pay it off. You can use the tips above to save money and allocate it to debt payoff, or pick up some temporary work to pay it off faster.
Don’t forget to download our guide!