New Year’s Resolutions for Financial Improvement

Planning & Saving
on December 26, 2012

Although New Year’s resolutions often relate to personal health or changing bad habits, it can also focus on financial improvements or resolutions related to getting the finances under control. Having a few ideas in mind will make it easier to make a resolution that is appropriate to the individual situation.

Save Money

Saving money seems simple enough, but it’s a difficult achievement for many. Making a goal to save more money does not necessarily mean giving up every special purchase or cutting out every small luxury. Instead, it should focus on creating a budget and plan that works around spending habits and the savings goal.

The resolution to save more money should start with determining if it is possible to put more aside for emergencies, investing or building up a retirement account. When most spending relates to necessities or fixed payment accounts, the ability to cut back might have limitations. Even if limitations exist, making a spending plan that works around the flexible spending will often make it possible to put aside a few extra dollars per month. Even five dollars saved each month adds up to $60 extra in the bank by the end of the year, which is still accomplishing the goal of saving more money.

Research Investments

Depending on the situation, it may or may not be possible to put money into investments. Regardless of whether the funds are available to invest, it is still important to learn about investment options. Making a New Year’s resolution to learn about an investment option will provide a wide diversity of opportunities in the future.

A resolution related to learning about investment options should focus on a single opportunity within the next year. For example, a resolution to learn about stock investments will provide many opportunities to improve on an investment portfolio. Select one investment opportunity and then learn about that single opportunity over the next year. It is relatively easy to learn about a single opportunity and it is easier to keep the resolution when it does not focus on too many categories at one time.

Reduce Debts

Financial resolutions often relate to paying off certain debts, but it can become hard as the year continues. Instead of making a goal of paying off all of the debts, a realistic resolution is reducing the amount of debt over the next year. Reducing debts can mean adding a little extra to the minimum payment each month, which makes it a resolution that is possible to keep. The goal is reducing the principle, so a little extra each month will start working on getting the debts repaid without making it impossible when sudden emergencies occur that prevent the possibility of making larger payments.

With the New Year around the corner, it is time to make resolutions. Deciding to set a goal related to finances will provide more stability throughout the next year. The key is setting goals that are realistic and possible, regardless of the current financial situation.

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