At the start of every year, many people find themselves making promises for the year to come. These resolutions may relate to things like weight loss, professional development, or finances. Yet no matter what category they fall into, if you have ever set a New Year’s resolution for yourself, you know how difficult it can be to see them come to fruition.
Financial habits are especially hard to build, and bad financial habits are hard to break. The good news? If you have been looking for a way to stick to your savings plans, educate yourself on finances or just spend less, this is your year! With these 6 financial resolution tips, it’ll be New year, same you… but with way more financial confidence:
- Remind Yourself Why You Started
Whether you decided to cut down on daily spending, save money for a family vacation, or just take the time to really familiarize yourself with your financial situation, it’s important to remind yourself why you started. Having a clear objective in mind will keep you motivated even if reaching your goals becomes difficult. Plus, it doesn’t hurt that having a better grasp on your finances can help alleviate stress and anxiety, which will make it easier to meet your other goals, too! Remind yourself why you set your financial resolution in the first place and push yourself to see it come true.
- Utilize Budgeting and Saving Resources
Savings plans and budgets are an excellent way to help visualize your finances. Online and print resources can allow you to see exactly how much money you are spending and how much you can afford to save. Knowing where your hard-earned money is going and how it’s impacting your life can help you better align your financial priorities. Budgeting and savings plans are available online and may also be available through your bank.
- Cancel the Subscriptions You Aren’t Utilizing
Streaming services and monthly memberships may come at a low monthly cost, but they can add up fast. The average American pays about $55 every month on streaming services. [1] Canceling subscriptions and memberships you aren’t utilizing will allow you to put funds towards savings or other expenses you may have.
- See What Resources Your Employer Offers
Many employers offer financial benefits for their employees. This may include phone plan discounts, free gym memberships, or other financial assets. One benefit offered by many employers is Kashable. Kashable offers low-cost loans to qualifying employees to be utilized for virtually any expense. Aside from loans, Kashable also offers a financial literacy library to help you manage your money, even if you don’t know where to begin.
- Prepare for Unexpected Expenses
2020 and 2021 proved that we could all benefit from expecting the unexpected. Set aside a percentage of your monthly earnings to go towards unexpected expenses. This will allow you to avoid pulling from other resources, like retirement savings and expensive loans when illness, emergencies, or other expenses arise.
- If You Fail, Don’t Give Up
43% of people fail to keep their New Year’s Resolutions[2], and that’s okay! If you spend more than you intended, treat yourself to something outside your budget, or just stray from your financial plan, don’t fret! Giving up on your financial resolutions could be more detrimental than simply taking a step back and reevaluating your plans. Remember why you started and keep up the good work.
Finances can be stressful, especially when you don’t know where to begin. Aside from these 6 steps, be sure to take notice of what financial literacy options you have available to you. Programs like Kashable can help build up your financial confidence and make it easy to stick to your financial resolutions.
[1] https://www.google.com/url?q=https://www.jdpower.com/business/resources/despite-return-normal-people-spending-more-time-and-money-streaming-services-now&sa=D&source=docs&ust=1640191743554125&usg=AOvVaw38e4YBWNVEb0Nrvuk3PHaG
[2] https://www.sundried.com/blogs/training/research-shows-43-of-people-expect-to-give-up-their-new-year-s-resolutions-by-february
Informative