How to Stick To Your Financial New Year’s Resolution

How to Stick To Your Financial New Year’s Resolution

2020 is here and while you may be set on hitting your goals this year, by February your resolutions will more likely fall by the wayside just like 80 percent of people in the world. But don’t worry, there are a couple of tips we’re sharing with you that will help you stick to your financial New Year’s resolutions.

Keep Your Resolutions Simple and Realistic

Instead of tackling all of your money goals at once, choose the one that will help improve your life the most may it be paying off high-interest debt, saving for a down payment on a home or saving more money when you retire. If you also keep your goals as realistic as possible, the pressure wouldn’t be too much for you to handle. For instance, examine your budget and figure out where you can make changes in order to pay off your mortgage in under a year. Use the sum of that amount of money you can realistically cut to determine how much you can save or pay off.

Let’s say you want to pay off $10,000 of debt in one year. This may not seem like a realistic goal at first but once you break it down by month, you will soon realize that your goal is actually just $833 per month. That’s more realistic.

You need to know how to use the right numbers no matter how realistic your goal is. To track your finances, make sure you have a system set in place. There are free easy to use tools you can download that will allow you to connect your bank and investment accounts and it will help you monitor your finances for you. 

Target the Easy Wins

Have a closer look at your budget and find areas where you can cut back. Do you spend a little more than you would on food? Then try to go grocery shopping on a budget next time. You can also cut back on dining out with friends by entertaining guests at home - that’s even more fun to do actually.

Quick tip: Make sure your savings go toward your money goals if you intentionally cutting back in a spending category. If you don’t, that thirty bucks you saved using discounts from the grocery store app will be wasted. You might not always feel like doing it but try your best to transfer the money you’ve saved directly toward your savings.

Save Money Automatically

This is one of the easiest ways to pay yourself first. You can set aside a specific amount each month toward your money goals, whether it be for paying off the house loan or for an emergency fund. You can then utilize whatever is left for your living expenses. Don’t fall in that same trap people get into and forget to include your savings as part of your budget. Your money goals must be part of your budget and you should set aside funds for these goals first.

Conduct a Mid-Year Check-In

In the middle of the year around the month of June, conduct a mid-year review to make sure you’re doing what you’re supposed to do. If you find out that you’re losing track, think about making adjustments to your spending or change your original goal a little so that it’s more attainable. Things will not always go according to plan so don’t be too hard on yourself if this happens.

Aim to review your budget and savings goals once a quarter if you’re feeling particularly ambitious. Find a buddy to help you stick to your goals to help you stay accountable. Do your best to touch base with each other on a regular basis and make your meetups a fun thing to do.

Take Advantage of the Technology

In today’s generation, there are tons of savings, debt and budgeting apps that can help you maintain your financial resolution easier than ever. There are apps you’ll find online that can help you stay on top of your finances. For instance, Personal Capital can send you spending alerts if you’re having trouble budgeting. You’ll have the ability to check your budget as long as your phone is with you.

There is a higher chance for you to accomplish your goals if you keep these simple tips for your financial New Year’s resolution in mind. Take it one step at a time and check your finances regularly to develop your ability to budget, save, and prioritize.

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