The start of a brand new year is a fresh start for everyone, so why not use this opportunity to get your finances in check? Take a look at our top five financial New Year's resolutions to help you find success in 2018. From setting goals to reducing debt, these small habits and simple strategies can lead to big payoffs in your life. Start planning today!
1. Create Clear Goals
Sure, everyone wants to be rich and successful - but what does that mean to you? Do you want to clear your student debts as soon as possible, or are you trying to grow your portfolio? Think about your dreams for both the short-term and long-term. Write them down in a notebook, and come up with a plan to achieve them. Maybe you want to pay off your student debt by the end of the year, or maybe you want to build your retirement account by $6,000 in the next 12 months. Setting clear goals is the first step toward success.
2. Organize Your Accounts
What kind of saver are you? Do you keep your money in one place, or is it scattered across multiple banks and accounts? It may be time to do a little financial housekeeping.
- If you have unnecessary accounts that you no longer use, be sure to close them. Avoid losing money to excess bank fees!
- Have you opened an Individual Retirement Account? Whether you choose a Traditional or Roth IRA, you could reap many benefits for the future - as well as tax benefits in the present.
- Consider an Automatic Savings Plan (ASP) to help you save without stress. These accounts automatically pull money from your account to use for savings, investing, and other financial services.
3. Manage Your Debts
If you are working toward eliminating your debt, think strategically. Make a list of your current debts, along with the interest rate. The higher the interest rate, the higher the priority in your life. It may be worth your while to cash out investments like CDs and savings bonds to get rid of high-rate credit card debt, because you'll avoid paying sky-high interest every year. You could also consider services like a cash advance to help ease your debt for the new year.
4. Upgrade Your Financial Planning
We've come a long way since the days of balancing your checkbook by hand. Now there are tons of high-tech financial planning services to keep you on budget. From software to apps, it's easier than ever to stay on track with your goals. Check out online tools from your bank or investments to check on your funds in seconds, or pick up a budgeting app to cut costs and build savings.
5. Learn Something New
The world moves so quickly that it's easy to feel left behind when it comes to finances. Luckily, there are tons of amazing resources to keep you up-to-date on the latest expert finds. Check out books, ebooks, or even audiobooks from the library to stay fresh on the current financial advice from the top minds in the industry. You may be surprised by what you discover!