With this year coming to an end, it’s time to reflect and create goals for next year, from adopting a healthier lifestyle, to creating good habits, to improving financial wellness. If financial security is the goal, here are seven resolutions to start the New Year right.
Pay bills right after payday
Worry less about financial obligations by paying bills right after getting paid. Get reoccurring bills out of the way first, such as mortgage/rent, loan payments or insurance bills. It’s a good strategy to avoid late payment fees.
Improve credit score
Less than 1% of people have a perfect credit score, but there are ways to increase lower scores. Obtain a free credit card score through the bank and review it. Look for areas of improvement and work on them throughout the year.
A great way to increase a credit score is by repaying debt. Pay debts with the highest annual interest rate first, usually credit card debt. Consult with a financial expert to create a personalized plan to pay off debt.
Close unnecessary accounts
Many banks charge a monthly inactivity fee for savings or checking accounts that haven’t been used for a certain period of time. Review all bank accounts and close the ones that are rarely used or not needed anymore.
Although many people hate receiving change, those extra coins could amount to a nice sum of money at the end of the year. Keep change in a piggy bank or jar and deposit it in the bank or a change machine at the grocery store periodically. This extra money could be used towards a travel fund or to help pay off debt.
Create or increase savings to an emergency fund
An emergency fund is a financial safety net for someone faced with an unforeseen incident, such as long-term unemployment or a medical procedure that isn’t covered by insurance. Part of every budget should be dedicated to creating an emergency fund.
Read a financial book each month
Knowledge is power. Many people take up reading as a New Year’s resolution, so why not brush up on financial acumen? Learn how to grow money through investments, set up a portfolio and identify characteristics of stock growth by people who have been successful at it.
For more tips on financial planning, contact Alexander & Associates for a free consultation. Alexander & Associates offers clients over 20 years of experience in wealth building, estate planning and administration, probate business and litigation.
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