When creating your list of New Year’s resolutions, don’t overlook your financial goals. The beginning of a new year is a great time to make a fresh start. Plus, you’ll have your 2020 year-end bank statements and credit card summaries to help review your spending habits.
Here are eight resolutions for 2021 that can help put your finances on the right track.
Save more money
Whether you put money directly into a saving account or contribute to a 401K or another financial instrument, saving money gives you security for the present and future.
Improve your credit score
Your credit score plays into many aspects of your finances. A low credit score means you can’t borrow as much money to purchase a home and vehicle. And, when you do borrow money, you’ll pay higher interest rates. Boost your score by paying your bills on time, paying down debt, and limiting the number of accounts you have open.
Track your spending
Use an app or software to log your spending. You’ll know exactly where your money goes and be able to identify areas where you can cut back.
Schedule ‘no spend’ days
Pick a day of the week or month when you spend no money. Eat at home and forego shopping trips. This seemingly simple practice is a great way to control spending while developing a disciplined approach to your finances.
Eradicate bad spending habits
When you examine your spending, you will likely see some areas where you could develop better habits. For example, don’t pay full price for clothing, avoid splurging on unnecessary items, and don’t eat out more than once a week. Getting these spending habits in order will help you gain control over your finances.
Automate good habits
Use technology to your advantage. Automate transfers from your checking to your savings account and set up credit card payments on autopay. By setting these up at the beginning of the year when you’re motivated, you won’t slack off later.
Contact your credit card company
Call your credit card company to see if you can negotiate better terms. Ask for a lower interest rate or a due date that better aligns with your pay schedule.
Get help from a professional
Even with the best of intentions, there’s a good chance your New Year’s resolutions might not stick. According to a study from the University of Scranton, 45 percent of Americans set goals at the beginning of the year, but only 8 percent achieve them.
When it comes to goals for your finances, you need a realistic plan that works for you. If you need help setting financial goals, let us help. Greenberg Financial Group has more than 30 years’ experience helping clients manage their money. Contact us today and let us help you create a plan you can stick to in 2021.
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