4 New Year's Resolutions For Your Wallet
The holidays are over, and a new year has arrived. That means it’s time to put away the holiday decorations and start setting some New Year’s resolutions if you haven't yet. As you decide what you will work on in the new year, it’s a great time to think about what you can do to improve your finances.
Some common New Year’s resolutions include exercising more, losing weight, quitting a bad habit or trying something new. Similar principles can be applied to your financial New Year’s resolutions. Consider the following ideas:
Trim your budget. Take a good look at your budget and find some areas where you can make small adjustments. Over the year, the amount you save by not spending money on those items could add up to big savings.
Lose some debt. While you’re looking at your budget, choose at least one debt that you will be able to pay off before the end of the year. Then, figure out how much you must allocate toward that debt each month and commit to paying that amount. Once you eliminate the debt, you will have more money to apply toward other debt, put in your savings or to buy the things you want.
Quit spending money on one thing. Choose one expense that you can do without in 2024 — a streaming service subscription, eating out, trips to the local coffee shop, etc. You don’t have to give these things up permanently. Testing out whether you can go a full year without them, however, could allow you to build a new positive financial habit.
Try a new saving habit. There are many ways to add more to your savings. For example, if you are trying to cut out a specific expense, take what you would have spent on those items, or a portion of what you would have spent, and add it to your savings account. You could also apply a 24-hour rule to your spending to cut down on impulse purchases. The rule is simple: If you see something you want to buy, wait 24 hours before you make the purchase. Waiting could quell your impulse to buy that item and leave more for your savings. There are hundreds of tips on how to make small adjustments to boost your savings. Google some ideas and find one that works for you.
New Year’s resolutions can be difficult to maintain, but if you stick with one of the four listed above, you will not be disappointed at the end of the year.