The buzzword this week is resolutions. I categorize my resolutions by seven categories: personal, professional, financial, educational, family, spiritual, physical. For the purpose of this blog, I’m going to focus on five resolutions in the financial category. If you have yet to make your resolutions, think about these. But don’t take them word for word; personalize them and make them quantifiable (by adding specific money amounts and deadlines) to meet your needs and desires this year.
1. Pay Off the Credit Card Debt
It’s time to get rid of the debt baggage and say goodbye to those increasing interest rates. Strive to pay off your credit card debt so you can put that money towards other things.
2. Make a Budget
This could be for things like groceries, vacations, gifts, house re-modeling projects, or eating out. Try using a free website like Mint.com to help you keep track of your budgets to help you see where you’re overspending or making impulsive buys.
3. Save More Money
From savings accounts to IRA accounts, how can you save more money from your paycheck? Is it possible to add more money to the account that you usually did? Review how your accounts did last year or start new ones this year.
4. Evaluate Your Investments
Take a look at your portfolio and check which investments did well and those that didn’t. Rebalance your investment selections for better gains in the New Year.
5. Spend Less
As I mentioned in #2, watch your impulsive buys and wait a few days before you buy something. You might find that you didn’t really need or want what you were going to buy. Try eating out less and being smarter about what groceries you buy. Stop “treating yourself” so often!
“Save money” is a popular resolution on lists every year. Is it on yours? What are your tips for the New Year?