It’s a new year! The holidays are over and done with, and we had all that time to reflect on where we are, and where we want to go. And you know what that means—resolutions. How are you doing with those resolutions you made? Have you decided what you’re going to focus on for the next couple of months?
Don’t worry if not, today we’re going to be looking at some financial resolutions that you can make this year and hopefully stick to. And speaking of improving your finances, here are the New Year’s financial resolutions you should make.
Financial Resolutions you should make in the New Year
Resolutions can be a good way to motivate you to save money and improve your financial situation. Here are ten resolutions that will help you achieve your financial goals in 2023:
The first financial resolution you should make in the new year is to calculate your net worth. Your net worth is the value of everything you own minus all your debts. It’s a crucial number because it shows you how much money you have, how much money you owe, and what kind of financial position you are in.
Knowing where you stand will give you a better idea of which areas you need to change. To calculate your net worth, you will need to list all your assets and liabilities. After that, subtract liabilities from assets and see where you stand.
Compare the number you get with last year’s number. By doing this, you will be able to assess yourself and see what you can do better in the coming year. Sign up to receive our net worth template.
2. Pay down debt
If there’s one thing I’ve learned over the years, it’s that having a lot of debt can be so stressful. Paying off your debt will free up your cash flow and give you peace of mind.
If you have credit card debt, consider switching to a 0 percent balance transfer card so that you can pay off your balance over time at a low-interest rate while avoiding late fees and interest charges. If you have a personal loan, consider refinancing to lower monthly payments or consolidating multiple loans into one loan with a lower interest rate and shorter term.
Emergencies can come at any time, so it’s important to save up an emergency fund. This will help you in case something happens — like losing your job. You won’t have to borrow money from someone else or take out another loan just to get by until things get better again.
A good rule of thumb is to save enough money so that if you lost your job tomorrow, you could pay all your bills for at least three months without having to borrow from anyone or sell any assets. Plus, if something unexpected comes up—like a car repair—you have enough cash on hand to handle it without going into debt or relying on credit cards for temporary funding.
4. Boost your retirement savings
If you haven’t started saving for retirement yet, now is not the time to start. Start small and aim for increasing contributions over time until your retirement needs are met.
It’s critical to have a pension plan in place so that you have enough money in retirement. Review your lifestyle and see how much you will need after you retire.
5. Save more money each month.
Saving is the foundation for building wealth over time. A lot of people struggle to save enough money each month because they don’t know where to start or how much they need to save. Start by saving 1 percent of your income each month into a savings account until it becomes habitual, and then increase that until you can save the recommended 10% or more.
6. Understand your credit score and keep it high.
Your credit score is a number that represents your financial responsibility. It’s used by lenders to determine whether you’re likely to repay a loan on time, and it can have a significant impact on your life. If your score is high, you’ll have access to better rates on loans and credit cards. If it’s low, you may have trouble finding affordable loans and may be charged more for the ones you do get.
Here are five ways to improve your credit score.
- Understand your credit report
- Keep track of all of your accounts.
The first step in creating a financial plan is figuring out where your money goes each month. A budget helps you set realistic goals for saving and spending.
It also helps you identify areas where you might be able to cut back on expenses so you end up with more cash in hand at the end of each month — or at least less debt. Tracking spending doesn’t have to be complicated; all it takes is a notebook and a pen.
Sign up to receive our comprehensive budget template.
8. Grow your investment portfolio
The best way to grow your money is to invest it so that it increases over time. You can start by investing in money market funds, as they are relatively safe, and move on to more complex investment options as you learn.
Here are some other tips for growing your investment portfolio:
1) Diversify your investments across multiple sectors and asset classes.
2) Set up automatic contributions so you don’t have to think about it
3) Check in on your investments regularly.
9. Increase your personal finance knowledge.
There’s no better way to start the new year than by learning more about personal finance. A little knowledge can go a long way toward helping you make better decisions with your money. You don’t have to become an expert overnight, but by taking some time each week or month to learn about how different financial concepts work, you’ll be better equipped to handle your finances.
Enroll in those personal finance classes or read that book. Join our money make over club and enjoy discussions on the information in these books. Each month, the money club will provide practical personal finance solutions and discuss one book per month.
|Book||Money Club Reading Date|
|The Total Money Makeover by Dave Ramsey||January 15 to February 15, 2023|
|The One-Page Financial Plan by Carl Richards||February 18 to March 18, 2023|
|Rich Dad Poor Dad by Robert T. Kiyosaki||March 20 to April 20, 2023|
|Money: Master the Game by Tony Robbins||April 22 to May 22,2023|
|The Barefoot Investor by Scott Pape||May 24 to June 24,2023|
|The Intelligent Investor by Benjamin Graham||June 26 to July 26, 2023|
|The Little Book That Beats the Market by Joel Greenblatt||July 28 to August 28,2023|
|Think and Grow Rich by Napoleon Hill||August 30 to Sept 30, 2023|
|I Will Teach You To Be Rich by Ramit Sethi||October 1 to October 28, 2023|
|The Millionaire Fastlane by MJ DeMarco||November 1 to November 24, 2023|
10. Increase your income.
If you’re not earning enough money to meet your needs, then this is an obvious resolution. A few ways to do this include finding a higher-paying job or starting a side hustle.
The end of the year is a great time to reflect on your finances and set some goals for the coming year. While resolutions like saving more money and paying off debt are always important, there are some other financial resolutions you should make for the new year. This article provided a list of the best new year’s financial resolutions you should make. Which of these resolutions will you be tackling in the new year? Let us know in the comments.