A new year is the perfect time to change old habits for the better — especially when it comes to your financial well-being. But those pie-in-the-sky financial ideals that you wish you could achieve aren’t the ones that will stick. For example, if you know that making a resolution to cut out all discretionary spending for the next year will never work, why waste time pretending it will? Instead, consider financial resolutions that are not only worthwhile but also that you believe you can achieve.
Learn More: Budgeting 101: How To Create a Budget You Can Live With
Also See: Tips To Keep Your Finances in Order Without Sacrificing What You Want
Make Time Each Month To Revisit Your ‘Why’
When you don’t have a compelling reason to make the effort to do something, chances are it won’t become a long-term habit. So come up with a “why” for each financial resolution you make. For example, if you decide to avoid shopping online for a month to save money to put toward your credit card bill, ask yourself why that particular resolution is important to you. A good “why” is that you don’t want to be stuck with a high credit card balance that you have to pay interest toward each month.
Once you’ve written down a “why” for each financial resolution you’ve made, revisit them each month to make sure they still hold true. If not, come up with new compelling reasons to help you stick to them.
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Save Money by Doing Things Yourself
Don’t panic. You don’t have to give up everything you enjoy having done for you — especially if it’s something that makes your life easier and more organized, such as hiring a maid service.
“My favorite financial resolution involves assessing what ‘little luxuries’ you regularly treat yourself to that you could potentially do yourself,” said Trae Bodge, smart shopping expert for TrueTrae. “Perhaps it’s going to the car wash once a month or getting regular
manicures. If you commit to doing that thing yourself instead of paying for
it, while also committing to socking that money away, imagine how much
you’d save in a year.”
Improve Your Credit Score
A solid credit score can be helpful in so many ways, especially when it comes to saving money on interest. One way to improve your credit score is to make a commitment to pay off the balance on your credit card each month.
“If you can get to the point where you’re regularly using your credit card and paying it off every month, your credit score will grow by leaps and bounds,” said Scott Stanley, CFP and founder of Pharos Wealth Management. “You’ll also earn rewards offered by your credit card company if you’re regularly using your credit card in a responsible way. The benefits have a compounding effect, so get to work on building good credit card habits as soon as you can!”