When it comes to resolutions, there are two distinct kinds of people: those that make and keep their resolutions, and those who have the best intentions but somehow always fall off the resolution wagon. If you happen to fall into the second category, don’t feel bad. Many who make new year resolutions usually give up even with the smallest faux pas.
If your resolution revolved around your improving finances, it’s even more important to get back on track. Since financial resolutions look different for everyone, you need to know to focus on. Below are some of the top financial resolutions you’ll want to keep this year.
Overcome Financial Worry
Money is always an emotionally charged topic. Even for those who don’t have any financial worry, talking about their finances brings about a flood of emotions. For those who are struggling financially, specifically with their student loans, the mention of money can cause overwhelming anxiety. If you’ve been paying on your loans but aren’t really making any headway, you should research how to refinance student loans with a cosigner. With a cosigner, you may be offered a lower interest rate, which makes paying them off easier and faster. Both you and your cosigner do need to have good credit so be sure to check your credit report before you apply.
Create a Budget That Actually Works for You
Another major mistake you want to avoid is creating a budget that doesn’t work for you. You need to be realistic with how much money you earn, how much you spend, and how much you can save. You also need to be honest with yourself and know when to save you’ve made errors in how you budget.
If you put money in your savings account each pay period but always find yourself taking it back out to cover bills, you need to find out why. Are your living expenses too high, or are you trying to live beyond your means? The best way to keep this resolution is by being honest with yourself. Look at all your bills and how much money you want to save and spend as mad money. If the figures are lining up and you’re constantly going into the negative, you need to make changes.
Increase Your Wealth
Small steps can bring about big changes, so now’s the time to grow your wealth. Speak to a financial advisor who can help you decide which types of investments are best for you now and in the future. If you want to go it alone, you can try out online platforms.
Plan for Large Expenses
With the cost of daily living continually increasing, you need to plan for more expensive purchases well in advance. You can even set up a separate bank account where you save money for these purchases. You can deposit a certain amount each week, so when it comes time to make the purchase, you won’t have to dip into your regular saving account.
Commit to Living Well
Living well doesn’t mean spending more money. It’s more about living in a way that makes you feel good in every way. Think about what makes you feel happy mentally and physically. For some, it might be having a couple of months of savings in the bank, whereas someone else might to want to have enough money to buy themselves something special without feeling guilty. Keep in mind that your idea may change over time, and that’s okay.
Improve Your Credit Score
Unless your score is already over 700, there’s always room for improvement. Order a free copy of your report and look for any reporting errors. You can easily dispute them online with the proper documentation. If your score is low, try paying a little more each month on your cards to lower your debt ratio. You can focus on paying off one single at a time, or you can opt to spread out it out over all your credit cards.