Every year people make New Year’s Resolutions. The third most common resolution is to spend less and save more. However, only 10% actually keep that resolution. So the question is, “Should you even try to make financial resolutions? We say, “Absolutely!” Here are three ways to actually keep your resolutions and make your New Year, New “Money You” shine in 2018!
Finance Resolution Tip #1
Start with REASONABLE financial goals. Most people tend to say, “I want to be completely out of debt by June!” and then June rolls around and you are have paid off about 1/10th of that. When resolutions are unreasonable you can understand why only 8% of people accurately accomplish any New Year’s Resolutions. You could, make a reasonable goal to pay down may 25% of that debt each quarter or pay off half this year and half next year. It should be reasonable and obtainable where you can actually get some forward momentum.
Finance Resolution Tip #2
Make your money list. There are four main areas to concentrate on making SMALL SHORT goals: insurance, taxes, investments, and retirement.
• Insurance: Shop rates. Are you paying more than you need to?
• Taxes: Start sooner. If you always wait until the last minute, make a goal to get them done early in 2017.
• Investments: If you are currently putting away $0, make a goal to put away something. Shoot for $50-100 a month.
• Retirement: Get real and see what you will really need. Check out this online calculator as a good place to start.
Finance Resolution Tip #3
Make one BHAG, Big Harry Audacious Goal! You just have to have one! Here is our BHAG this year. We bought a car and put half down and then financed the other half. Our BHAG is to pay the other half off this year. If it happens, we will feel awesome, like rockstars!! But, if it doesn’t happen it’s not going to ruin the Palmers’ financial situation. Swing for the fence.