The year is nearing an end, and people across the world and of all ages are starting to make their New Year resolutions. For many, that will include at least one financial resolution. Start your year off right by taking steps toward your financial goals with these tips for your best financial year yet!
Stay Informed of Financial Trends
The world moves quickly, and it isn’t slowing down anytime soon. As the new year approaches, so do new and emerging trends in the financial world. While not all financial trends will be relevant to you, it’s a good idea to be informed of what can be expected in terms of financial trends.
Many new financial apps, updates, and economic trends could impact your financial goals. Use trusted resources like Forbes Money and Nerd Wallet to stay informed of financial happenings around the world.
Make it a resolution to pay close attention to the financial world around you, as it will help improve your financial literacy and likely get you to your goals more quickly.
Set Defined SMART Financial Goals
Any successful financial plan starts with some well-thought-out goals. Make these goals specific, measurable, attainable, realistic, and time-bound. Your financial resolutions can be as simple as reducing your monthly shopping expenses or as lofty as paying off your full student loan balance before the end of the year.
Your goals should be realistic, however, and they should be informed by an audit of your current income and expenses and a budget that you can use as a guide.
Understand Your Options
A big part of financial planning is taking the time to understand what options are available to you. An essential financial tip is simply understanding what options are available to you regarding financial help, services, and more. Speaking with a financial manager or professional will give you a better idea of where you stand. Take advantage of our free financial literacy programs to get started.
Outline Your Strategies
Don’t stop setting goals; define how you will achieve them. If, for example, your goal is to save up for a $20,000 downpayment for a house in 5 years, open a high-yield savings account that you contribute to every month to get there faster. GO a step further by committing to contributing a percentage of your tax return or other additional income to your savings. Whatever your methods, be specific about them and then stick to them.
Prioritize Your High-Interest Debt
If you only take one of these financial tips to hear, be it this one. A significant contributor to financial turmoil is high-interest debt. Many Americans spend years paying down debt only to find themselves stuck in a loop of interest accumulation. When you outline your financial goals, we recommend you prioritize paying off your highest-interest debt. This will help you get to a clean slate faster than if you only pay off your minimum required payment each month.
The start of a fresh new year is a great time to get on track financially and start your journey toward financial wellness. If you’re looking for financial support this new year, contact our team of financial experts today.