Around the holidays many people make resolutions for the following year. While most resolutions are admirable goals, one of the best things you can do to improve your life in the upcoming year is to make financial resolutions that will positively impact you and your family.
Below, you’ll find six of the best financial resolutions you can make in the upcoming New Year.
Make a plan to reduce your debt.
Debt will drag you down, damage your credit score and prevent you from saving as much as you would like for retirement. Set up a plan for paying off your debt at a calculated rate. You don’t have to pay it all off in a single year if you have a lot of debt but making a plan that will put a dent in the amount you owe is essential.
Set up a savings plan for you and your family.
Even if you’ve just joined the workforce it’s never too early to start saving for retirement, not to mention a potentially rainy day. You don’t have to save half of every paycheck but putting aside more than a few dollars each month will add up to a big amount down the road.
Make sure anything you invest fits your current needs.
Invest the money you have saved in low-risk ventures or put it aside in accounts that will grow like an IRA or 401k. For example, it’s not wise to invest money you might need in an account type that will result in big fees if you need to remove part of your money for expenses.
Review your credit report right away
Your credit score affects everything from buying a home to getting a loan. Remove black marks and make sure it’s accurate.
Set aside money for your child’s education.
Even if they’re young, it’s not too early to start saving as tuition costs are going to rise continuously.
Don’t make financial goals you can’t keep.
Planning to save more than is reasonable or investing in large amounts and failing to see a return can set you back even further.