New Year is the perfect time to change old habits for the better. Especially when it comes to financial well-being. But the fictitious financial ideals you hope to achieve are not permanent. For example, if you make the decision to cut all your discretionary spending next year and you know it won’t work, there’s no need to waste time pretending to do so. Instead, consider financial solutions that you believe are not only worthwhile, but achievable.
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Make time each month to reassess your “why”
If there is no compelling reason to strive for something, it may not become a long-term habit. So come up with a “why” for every financial decision you make. For example, if you decide to avoid online shopping for a month to save money on your credit card bill, ask yourself why that decision is important. A good “why” is that you don’t want to get stuck with a high credit card balance that has to pay interest every month.
Once you write down the “why” for each financial decision you make, review them each month to make sure they are still true. , help me stick to them.
save money by doing things yourself
Do not panic. Especially if it’s something that makes your life easier and more organized, like hiring maid service.
Trae Bodge, smart shopping expert at TrueTrae, said: “Perhaps you’ll go to the car wash once a month, or get a nail polish on a regular basis. If you decide to do it yourself instead of paying for it, and at the same time commit to wasting that money, in a year Imagine how much you could save.
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improve credit score
A solid credit score can help you in so many ways, especially when it comes to saving money on interest. One way to improve your credit score is to commit to paying off your credit card balance each month.
“Using your credit card regularly and making monthly payments can dramatically improve your credit score,” says Scott Stanley, CFP and founder of Pharos Wealth Management. “If you use your credit card in a regular and responsible manner, you can also earn rewards that your credit card company offers. Benefits compound interest, so develop good credit card habits as soon as possible. Please give me!”
Start saving or increase your donation with a 401(k)
Tania Foster, Founder and Financial Advisor of Planttrust Wealth Management, said: “Some people find it difficult to secure retirement funds or don’t know where to start, but a 401(k) is a great place to start. The great thing about contributing to your 401(k) is that it will be deducted from your paycheck.Set up your donation now and get into the habit of saving.Unless you get a bonus or a raise, You don’t need to make any changes, and in most cases your employer will give you the option to make contributions automatically, so you don’t have to do much.”
Get company match
Speaking of donating to your 401(k), be careful not to leave money on the table.
“Many employer-sponsored 401(k) plans offer corporate matching,” said Brian Mirau, founder and president of Mirau Capital Management. ) If the match is 3%, then match up to 3% as long as the employee contributes the same amount to a 401(k) as a New Year’s resolution, showing how much they contribute to an employer-sponsored retirement plan. Make sure you’re contributing enough to be aligned with the company, and if not, put free money on the table that you can invest and grow over time. This resolution is great because one adjustment to your retirement benefits will give you more money to save for the future.”
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This article originally appeared on GOBankingRates.com: 5 Financial Resolutions of 2023 That Actually Stick
