It’s the start of a new year, and with it comes the opportunity to set new goals and make positive life changes. One area that many people look to improve is their finances. Whether you’re looking to save more money, pay off debt, or invest in the future, setting financial resolutions can be a great way to stay motivated and on track with your financial goals. Here are a few ideas for financial resolutions to consider as we kick off the new year:
- 1 – Create a budget and stick to it. One of the most important things you can do to take control of your finances is to create a budget that outlines your income and expenses. By tracking your spending and setting limits for different categories, you can ensure you’re not overspending and save more money in the long run.
- 2 – Save more money. Many people struggle to save money, whether because they have high expenses or have a hard time setting aside a portion of their income. One way to make saving more manageable is to automate your savings by setting up automatic transfers from your checking account to your savings account. Consider setting up a high-yield savings account or investing in a retirement account to help your money grow faster.
- 3 – Pay off debt. It can be overwhelming and stressful if you’re carrying a lot of debt. Plan to pay off your debt as quickly as possible by prioritizing the debts with the highest interest rates and making extra payments whenever you can. Consider consolidating your debt to simplify your payments and potentially save on interest.
- 4 – Build an emergency fund. Life is full of unexpected expenses, and it’s essential to have a financial cushion to fall back on when things don’t go as planned. Aim to save enough money to cover at least three to six months of living expenses in case of an emergency, such as a job loss or unexpected medical bills.
- 5 – Invest in your financial education. Whether you’re a seasoned investor or just starting out, there’s always more to learn about personal finance. Consider taking a class or reading a book to learn more about investing, budgeting, or other financial topics. The more you know, the better equipped you’ll be to make intelligent financial decisions.
As you set your financial resolutions for the new year, remember that it’s essential to be realistic and flexible. It’s okay if you don’t meet all your goals right away – the important thing is to keep working towards them and to stay committed to making positive changes in your financial life.
Albert Herzog IV, CFP®, CRPC® may be reached at 810.229.6446 or aherzog@ewmadvisors.com
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