Turn Your Financial New Year's Resolutions into a Reality
New Year's resolutions tend to make you think about wellness goals - but what about the health of your wallet?
Much like our waistlines, our financial scenarios can be rather strained after the holidays. We've overindulged and now we're left regretting those decisions. But this can be the year that everything changes for your financial portfolio for good. It just takes a little planning.
Here are five goals you can consider to boost your financial health in 2021:
- Increase savings. If 2020 taught us anything, it's that worst case scenarios do happen. When hard times come, give yourself the peace of mind that you are financially prepared to weather the storm. An easy way to save money is by taking a critical look at your monthly expenses. you might be surprised to find that you're still paying for a magazine subscription you no longer read or a tanning salon membership in a city where you don't live anymore.
- Track your spending. It doesn't matter if you spend $50 a week at Starbucks or $3 in scratch-off lottery tickets. What's important is knowing where your money is going and being intentional about every penny. Keep a record of your spending for a few months and look for patterns. There might be convenience fees dragging you down or habits you decide aren't worth the expense.
- Boost your income. Maybe that's from a side job, or from changing your tax withholdings. Also consider a rewards credit card that gives you points toward future purchases or cash back on things you would buy anyway.
- Pay off debt. It's time to end that toxic relationship you had with Amazon Prime over the holidays. Instead, focus on paying off any debt you might have accumulated. That includes everything from credit cards to personal loans. A popular approach to paying down debt is to start with the account with the lowest balance and pay that off first. Then, take the monthly payment you would have made to that account and add it to the one with the next-lowest balance.
- Plan for retirement. The younger you begin planning for retirement, the longer you will have compound interest working on your behalf. That's free money you will earn simply by saving early. Even if this isn't the year when you start tucking money away in your 401(k), at least make a plan for when you will start and with how much. Consider how much you want to have saved at retirement, then create a plan that will get you there.
Planning for financial success is key to growing your wealth, and at RVCU we are invested in helping you do that. Our certified financial coaches are here to help members achieve goals just like these. Call (815) 282-0300 to schedule a virtual appointment or phone call to discuss your individual financial goals. Together, we'll turn your dreams into reality!