Resolutions for a Healthier Financial Life

Some financial resolutions to consider

The new year is right on your doorstep. That means it’s a good time to think of financial New Year resolutions. Start next year the right way and you’ll set yourself up for success. Here are some financial New Year resolutions to try.

Attack Debt

Debt can be crippling. Start the New Year with a plan to pay it down or to eliminate it completely. If the debt payment method you’ve been using isn’t quite working for you, switch things up. Go through your budget and trim the fat. Use those extra funds to pay down your high-interest debt faster.

Boost Your Credit Score

Paying down debt goes hand-in-hand with this next resolution: improving your credit score. Make it a goal to increase your credit score this year. Paying down debts will help. But so will monitoring your credit report for errors, making on-time payments, and using 30% or less of your total credit available.

Build Your Fund

An emergency fund is one of the backbones of solid financial health. If you have less than six months’ worth of fixed expenses in your account, make moves to change that. It’s best to be prepared so you don’t get caught in a financial emergency without an emergency fund.

Commit to Long-term Savings

Make this the year you do everything possible to pad your retirement accounts. Contribute as much as you can to retirement vehicles like a 401(k). See if your employer offers a match. At the very least, contribute enough to get the full match amount. You can also put away funds in an IRA and a high-yield savings account.

Do One Thing: Revise your budget so that there is less discretionary spending and more money for paying down debts and increasing savings.

Chris O'Shea/SavvyMoney