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5 Attainable Financial New Year’s Resolutions
Every year millions of people make a financial New Year’s resolutions having to do with improving finances, getting out of debt, or basically anything related to improving their finances. Yet not long after the new year, our plans fall flat. Most people give up, forget about it or just think that it is too hard and that they will never be able to do it.
Improving your financial situation is not an easy thing to accomplish. It takes hard work and perseverance. You can not expect things to change overnight. But the good news is, that it can be done and you will be so much happier once you reach your goal.
The key to staying on track with your resolution to improve your financial situation is to set small manageable goals. By doing this, you are much more likely to stay on track and eventually get to where you want to be and have the best financial future possible.
I have put together some small manageable steps that are not too overwhelming. Tackle each of these goals one at a time and before you know it you will be in the best financial shape ever.
Create a Budget You Can Live With
Having a budget is the key to your financial stability. Many people do not like to budget, it is not fun but it is necessary to be financially stable. There are many budgeting tools out there to help you out. Whether it’s a spreadsheet, app or budgeting worksheets, find one that works for you and stick with it.
Budgeting is necessary for you to keep track of where your money is going and is a must in helping you get out of debt and save for the future. The key to creating a budget is to create one you can live with and that has a bit wiggle room.
Create a Debt Repayment Plan
Getting out of debt needs to be a priority. If you have debt, this should be a major focus for you right now. You need to create a debt repayment plan and work this into your budget. I recommend the Debt Snowball because you see results faster which is encouraging and will help you stay on track with your plan.
Build an Emergency Savings
Start off with a goal to reach at least $1000 in emergency savings. This also needs to be worked into your budget. An emergency savings is a must for you to stay on track with your budget and debt repayment plan. If an unexpected expense arises you will be able to deal with it. Once you are in a better place financially, your next goal should be to build up that emergency savings to at least 3 months worth of living expenses.
Automate Your Payments
Paying bills late costs money in late fees, finance charges and interest. It not only affects that one bill you forgot to pay but it can affect your overall finances. Paying late will have an impact on your credit score, which could increase your interest rates on multiple accounts. And, in turn, will impact your budget and debt repayment plan. Automating your payments is one of the easiest ways to avoid this costly mistake. It is also one of the easiest tasks to complete in your journey to financial stability.
Improve Your Credit Score
Just like paying bills late, improving your credit score will have an impact on your total financial health but in a positive way. Having a good credit score can save you money on interest rates, insurance premiums and more. Working on improving your credit score may seem impossible when you are in debt. The key is knowing what makes up your credit score and working on each factor one at a time and you will see that it is not that difficult to bring it up.
Plan For The Future
Make a plan for your financial future. This should definitely include saving for retirement, but depending on where you are in life, it could also include other major financial goals such as saving for a down payment on a home, saving for your children’s college fund, or taking a leap into starting a business and much more. Set long term financial goals and make a plan on how you are going to reach them.
Reaching your ultimate goal of having a bright financial future may seem like it’s impossible and so far away. You will need to be strong and you will have to put work into it, but the end result will be so worth the effort. All the above steps will set the stage for achieving your ultimate goals. Tackle each one of these small manageable goals and before you know it, you WILL see the light at the end of the tunnel and have a bright financial future!!
I’d love to hear what financial goals you are working on and how you are doing. Please leave a comment to share.
Need more help in reaching your financial goals? Check out the Well Kept Wallets online course “Debt Free in 18 Months” for step by step guidance to a debt free life!!
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