Financial Resolutions for the New Year

[caption id="attachment_4117" align="alignnone" width="835"] Financial Resolutions for the New Year[/caption]

With the end of a difficult year, Americans are now looking forward to their financial futures. According to Bank of America's survey polled over 2,000 consumers nationwide - saving and retirement planning topped off as two of the most popular financial resolutions for 2023! With sound money management strategies in place, it is possible not just to secure your future but also to live stress-free amidst uncertain times.

Ready to make a fresh start? Taking matters into your own hands is step number one - so why not get started today on securing your future? A little planning can go a long way in helping you reach the goals you set out to accomplish this 2023.

Create a Budget:

Creating a budget can be an effective financial resolution for many people. It is one of the essential steps toward setting and achieving financial goals. No matter what your budgeting needs are, it's necessary to take the time to create a budget plan that will help you track your monthly income and expenses. Establishing a budget ensures you're spending money on items that will benefit you and not putting unnecessary strain on your finances. A budget can act as a roadmap for managing your finances; with it, you'll have clarity of where each dollar is going so you can better plan for the future. Getting on budget will assure you of knowing exactly where your money stands each month - so don't wait - start budgeting today!

Build Your Emergency Fund:

Building an emergency fund is a wise move for anyone looking to protect themselves from financial surprises. Prioritizing savings can help build a buffer against unexpected expenses - that way, in the event of any life emergencies or changing circumstances, like being laid off or filing for bankruptcy, you're not scrambling to figure out how to make ends meet. Taking some time to research savings options - whether through a savings account, savings bonds, stocks, mutual funds, or other vehicles - can help ensure your money is available when needed and earning returns while it sits in your emergency fund. It's important to establish goals, so you know what kind of savings investment fits your needs and objectives. With thoughtful planning and regular deposits into savings accounts or investments, building an emergency fund may provide the necessary support, so you feel confident during times of uncertainty.

Pay off Credit Card Debt:

When it comes to debt, credit card debt can be some of the most oppressive debt. The interest you pay on purchases can make debt accumulation spiral out of control quickly. In today's age, it is more important than ever for individuals to keep their debt levels low and establish good credit scores. Rather than turning to debt in times of emergency, having a savings plan in place provides peace of mind during financial challenges. If you already have existing debt from your credit cards, make sure you keep up with payments and prioritize paying off debt as soon as possible to avoid even more debt in the form of compound interest.

Improve Your Credit Score:

Improving your credit score is an important piece of achieving financial goals. Building credit and maintaining a high credit score gives you access to the best credit card offers and lower interest rates on credit cards, car loans, mortgages, and more. You are entitled to a free annual credit report.  The first step in improving your credit score is to obtain your annual report from the three credit bureaus and review it for any inaccuracies. The best way to improve your credit score is to pay off your credit card balances in full each month and avoid carrying a balance of over 30% of the total credit limit. Additionally, it's wise to consider taking advantage of balance transfer opportunities if they make sense for your financial health - as long as you can pay off the transferred balances within 6-12 months. By actively managing credit, budgeting wisely, and taking calculated risks with credit cards, you can reach your financial goals sooner and with fewer headaches.

Look for Ways to Build Your Credit:

In the world of personal finance, having good credit is essential for big purchases like a house or a car. The best way to build your credit score is to start by properly managing your financial accounts. Balance transfer credit cards are a great way to save on interest, especially if you have existing high-balance debt. Spend responsibly, track your expenses and make sure to pay your monthly payments on time, as late payments can have a negative impact on your credit score. Put plans in place so that you're saving some money each month while also keeping an eye on things like balance transfers and promotional interest rates. Building credit takes time and careful management of your finances, but with the right commitment, it can be done - and the results will put you in long-term control of your financial future.

Save for Retirement:

Retirement should be something that everyone takes seriously. It’s essential to start planning for retirement early, as it will make retirement a more comfortable experience when the time comes. One of the best ways to save money is by opening retirement accounts, such as an IRA (Individual Retirement Account). Every year you save for retirement, you will receive annual income that can go towards your retirement expenses. Financial advisors can also help determine the best time to set aside funds and make appropriate investments that can benefit you in the long run. They may even suggest using retirement funds towards a downpayment on a home - allowing yourself more passive income when it’s time to retire. With careful savings, retirement planning can become a less daunting task!

Set Short and Long-Term Financial Goals:

Setting short-term and long-term financial goals is an essential step for anyone looking to make sound financial decisions. To start, emergency savings should be a top priority. This will help protect you in the event of a financial emergency. Next, take a look at your spending habits. Just by being intentional about it, you could end up saving money that can be allocated towards other financial goals. Then, it's also important to review existing insurance policies to make sure they're still doing the best job possible at protecting your finances. Life insurance should not be overlooked either, as they give extra assurance that your loved ones will still have financial security even after you're gone. Setting meaningful short-term and long-term goals gives peace of mind knowing that you have taken steps proactively to secure your future wealth.

Make extra Mortgage Payments:

Making extra mortgage payments is an increasingly popular resolution across the country. Americans of all backgrounds attempt to decrease or even eradicate their debt by making regularly scheduled extended mortgage payments. The financial freedom of being free of debt is what drives people towards these extra payments. What's great about this strategy is that people ultimately control their destiny by setting goals to make these additional payments and watching them add up as they progress. It's an excellent way to stay in control of their money and achieve their financial ambitions without having to depend on outside help. Making extra mortgage payments proves a fantastic opportunity for people across the country who want to pursue more financial freedom and gain control of their finances.

Bottom Line:

New Year’s Resolutions can come and go but setting goals now to grow your wealth is crucial in securing a financial future that will leave you comfortable and content.

Whether looking for a healthier retirement, short-term strategies to purchase a home or car, or developing a portfolio that will support generations, there is no better time than 2023 to work on getting farther ahead or get started.