We all love making New Year's resolutions. Being hopeful, optimistic, and setting a goal can boost our motivation to achieve what we set out to accomplish. According to a 2021 CBS News Poll, 20% of those polled chose "improving finances" as their New Year's resolution, making this the second most popular resolution after losing weight and improving health.
Those who wished to improve their finances wanted to do one or more of the following:
- Save more money
- Pay down debt
- Spend less money
Achieve Your Financial New Year's Resolutions with These Tips
1. Start With a Purpose
Creating a financial plan for the new year should begin with choosing an overall purpose. Perhaps you want to own a home, travel more, or spend less time at work and more time with the ones you love. Once your purpose or intent has been identified, setting your goals is the next step.
2: Create Small and Specific Financial Goals
Setting up small, specific goals that are easily achievable will be your key to success. What's one small thing you can do today that, compounded over many days, will get you closer to your ultimate financial goal?
3: Make and Keep a Budget
Budgeting is at the heart of all financially-based New Year's resolutions. Set up an easy-to-follow budget that works for you. Make sure it includes a goal amount to save each month in addition to tracking other expenses.
If you find that your initial budget doesn't match your monetary needs at the grocery store or elsewhere, be sure to adjust! Your budget should work for you; you shouldn't be a slave to one that doesn't fit your lifestyle.
4: Pay Yourself First
Budgeting and improving your finances are not about depriving yourself, and it's also not an all-or-nothing affair. Paying bills on time and saving money has to be a priority, but it's also important to allot a certain amount of your budget for outings, the foods you like, and small splurges.
5: Stop the Excuses
Perhaps you've made financial New Year's resolutions in the past and failed. This year can be different! But be sure to renew your resolve to succeed. A small push in the right direction and holding yourself accountable can make all the difference. Setting smaller, achievable goals can help make it easier to stay on track. If you stray off course, don't make excuses; reset and move forward.
6: Have an Accountability Partner
Speaking of holding yourself accountable, having someone on this journey with you can make it easier. Find a friend or relative interested in the same New Year's resolutions as you. As a team, you can hold each other accountable and achieve more.
7: Check Your Progress Regularly
Keeping track of your progress will show how far you've come and motivate you to keep going. Track your progress with an online tracker app or by hand in a notebook. Seeing progress can inspire you to keep working hard towards achieving your goal.
8: Acknowledge Progress vs. All or Nothing Mindset
The "all or nothing" mindset says that you've failed if you don't achieve what you set out to accomplish in every detail; not a good approach. Instead, aim to make small successes, track your progress often, and readjust your plan if necessary. Perfection is a myth, and every small action you take toward your goal is a step in the right direction and worth celebrating.
9: Look to Middlesex Federal for Solutions
There are many products available that can help you consolidate debt and save money. Using your home's equity for a Home Equity Line of Credit (HELOC) or refinancing your mortgage are some options you may want to consider. If you're not a homeowner, consider setting up a separate savings account or contributing to a retirement account. Contact Middlesex Federal today to learn more.
10: Know When to Ask for Help
There's a reason improving finances is one of the top New Year's resolutions every year. Organizing your finances can be challenging! Fortunately, there's a lot of help out there. Start at Middlesex Federal, a local bank committed to offering financial solutions to help you achieve your goals.
Start Your Journey to Financial Freedom Today!
It's worth noting that, in the CBS poll mentioned earlier in this article, after improving finances, the next two most popular resolutions were to spend more time with loved ones and enjoy life more.
The good news here is that when you focus on improving your finances, you inevitably also improve other areas of your life. Worrying less about debt and finding ways of making your money work for you and your future are great tactics for giving yourself more time to enjoy life.