Happy New Year! Financial New Year Resolutions top the list each year. Instead of setting a lofty resolution to overhaul your whole financial life, consider choosing a small, measurable goal which can be checked regularly and celebrate progress along the way. This will help keep you motivated and build positive habits. Try one of these techniques to set yourself on a path to greater confidence in your finances.
Track Your Expenses. What you track improves. Trimming unnecessary expenses from your budget is a great first step to meet nearly any financial goal. I challenge you to look at one month's transaction history on your bank and credit card statements and identify recurring or incidental expenses that you can eliminate. Maybe stop the coffee drive-thru every day or bring lunch to work instead of eating out. Do you have any unused subscription services or memberships you've been meaning to cancel? Focus on two or three expenses to cut back on.
Attack your Smallest Debt. Instead of trying to pay off debt all at once, focus on your smallest debt first and make that your goal. Create a timeline that is realistic and one you are likely to stick to. The frequent success of paying off smaller debts will motivate you to keep going.
Is your Retirement on Track? Time goes quickly and saving for retirement is easier if you start early. Any time is the right time to assess where you are and make the changes to your savings rate if necessary.
No matter which resolutions you set, make sure to celebrate the financial goals you reach along the way. Remember, you are not alone; we are here to help any way we can!
Information in this material is for general information only and not intended as investment, tax or legal advice. Please consult the appropriate professionals for specific information regarding your individual situation prior to making any financial decision.
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