Every time the New Year approaches, we hear resolutions about getting in shape, quitting smoking, or plans to travel more. But have you ever considered revamping your financial resolutions? Money can be a sensitive topic, but procrastinating on your financial goals can leave you feeling helpless.
It’s time to get serious and make your money count for the New Year. Keep these five financial resolutions in mind for the new year!
1. Save More Money
When you’re living paycheck to paycheck, saving money seems impossible. It helps to think of yourself as a bill that you owe each month. You pay all of your other bills, so why not pay yourself? And any amount helps, even if it’s $10.
If you feel like you aren’t disciplined enough to do it on your own, set up a credit union account that will automatically deposit a specified amount from each paycheck. Out of sight, out of mind.
2. Reduce Spending
Everyone has the ability to reduce wasteful spending habits. Take a moment and review your bank statements to see where your money is going. Is it dining out? Clothing and shoes? Whatever it is, challenge yourself to cut back. You don’t have to cut it out completely, but instead of going out every weekend, try to cut it to a couple weekends a month. On the weekends you don’t go out, invite friends over for a movie or board games. Just because you’re reducing spending doesn’t mean you have to be bored. Get creative!
3. Build an Emergency Fund
In a recent survey, only 39% of Americans said that they had the savings to cover a $1,000 emergency. For those who couldn’t, guess their source of reliance? Credit cards! On top of a regular savings account, it’s important to build an emergency fund to cover 6 to 9 months of expenses.
Consider opening up a money market account that will not only help you achieve your financial goals, but also earns you interest over time.
4. Pay Off Debt
Accumulating debt has become a staple of American society, and it also comes with stress and anxiety. Try to make a dent in paying off debt, or pay it off completely. If you have high-interest credit card debt weighing you down, consider consolidating it into a personal loan.
Credit unions offer lower interest rates than big banks or online lenders and will give you something more manageable with room to breathe.
5. Save for Retirement
Saving for retirement doesn’t just mean putting the minimum percentage in at your 401k at work. It’s a great start, but you have to diversify your income to set up a nest egg for retirement. Open up a managed IRA as an additional investment option to watch your retirement funds grow.
Georgia Federal Credit Union offers personal loans, money market accounts, and IRAs to help you achieve your financial resolutions for 2019. For more options available to you, visit our website and make it a resolution to contact us today!