The holiday season is here and you may already be thinking about your New Year’s resolutions. Your list might include the traditional goals such as exercising more, quit smoking and travel more. Those are all good goals, but what about financial resolutions?
When setting health goals, you might outline changes such as eating more vegetables with every meal and cut down on carbs. Setting specific, measurable goals for your finances is imperative to achieving them. If you are unsure on how to set these types of goals, here are some suggestions to make 2023 a strong year for your pocketbook.
- Reduce or Remove High-Interest Debt First
With all the credit card offers pouring in, it is easy to find yourself carrying multiple balances with different interest rates. This makes you dread statement time. If you are looking to manage your debt this year, look at consolidating your credit card debt with a low-interest loan or line of credit. This will alleviate the frustrations of managing different payments and can also reduce the carrying cost of your debt. Creditaid can help with a debt management program that can help you reduce your interest rates and have one monthly payment. - Invest In Yourself
The last couple of years has shown all of us just how important having an emergency fund can be. Our credit counsellors can help you understand your cash flow, spending habits, saving habits and so much more. - Save to Spend
We have used this hashtag a lot as of late because it has such a strong message behind it. If you are looking to accomplish something big in 2023, make sure you identify exactly what you are saving for and how much you will need. Once you have completed that, it is time to make a savings plan. Divide the full amount by the number of months before you plan to spend and this will tell you what you need to save each month. Perhaps open a high-interest savings account to amplify your savings. - Reduce Money Stress
Trying to reduce your debt while saving can seem like a mountain too big to climb, so focus on the little things first.- Sign up for a credit report so you know exactly where you’re at and celebrate the wins.
- Set up a transfer for each payroll from your main account to a high-interest savings account or retirement fund.
- Review your subscriptions and cancel what you no longer NEED to avoid subscription creep.
- Automate your bill payments to ensure they are paid on time.
- Adopt Good Financial Habits
Start the year by setting yourself up for success. Set aside time each week to review your finances and spending, pay outstanding bills and check your status. Over and above that, commit to some no-spends days. These are days when you do not spend money, which means cooking at home and staying away from online shopping. - Plan Ahead
The future comes faster than we would like and being prepared for it ensures security for the assets you have accumulated. That means getting past the mental block of estate planning including writing a will. You can seek the help of a lawyer or consider using DIY sites like Wilful for a cost-effective option.
Every day you wake up is another opportunity to change your financial health, but there is something about the New Year that inspires. Now is the time to fix old mistakes and develop new, profitable habits. Make sure you take the proper steps to ensure you actually stick to your resolutions this time!
If you would like help to kick start the process, contact us for a free credit consultation.