A new year always brings changes and new challenges. Don’t let your financial plan be one of them! Get started early on your 2021 financial plan by considering these six financial new year's resolutions.
- Set a Budget.
Budgeting can be challenging! Many people focus on the long term: 3 months, six months, even a year-long budget. However, most budgets fail by planning this far ahead. It encourages you not to revisit your budget. Still, by preparing a weekly budget rather than a monthly budget, you can review your finances weekly and adjust your plans as necessary.
- Put more money away for retirement.
If you have already started saving for retirement, then you are on the right track! This year, ask yourself, could you be putting away more? Maximizing your retirement contributions early is often recommended by any financial professionals.
- Improve your credit score.
How can you improve your credit score? There are two easy ways! First, be sure to pay all your bills on time. Second, if you own a credit card, aim to pay off your credit card bill in full every month.
- Pay your bills on time.
Paying your bills on time doesn't just help raise your credit score. It also saves you money! Late fees can range anywhere from 10-15% of your total monthly bill. Depending on the size of your bills, this can be a substantial amount! Saving money on late fees gives you extra cash to put towards something else.
- Make a plan.
Many people set goals at the beginning of the new year and are frustrated when they haven’t reached them months later or by year's end. While having goals is essential, they are unattainable without a plan. Focus on HOW you will meet your goal.
- Audit your finances.
This year, be sure you are using all that you are paying for. Go through your finances and get rid of any services you no longer use or need. Do you pay for two streaming services but may only need one? Do you find yourself throwing away unused groceries that have gone bad? These are two easy ways to trim unnecessary spending.
If you are interested in hearing more about organizing your finances this year, we have many financial professionals who are eager to help. Don’t wait to start your financial plan. Get started today!