Annually, you commit yourself to a goal or resolution that will radically change your life at the start of the calendar year. For instance, most people make New Year’s resolutions that focus on improving their health. That same line of thinking can be applied to your financial health. Here are five common New Year’s resolutions and how to translate them into goals for personal financial growth.
Quit smoking — Give up credit cards
Quitting smoking is one of the most common New Year’s resolutions, and with good reason. It’s a difficult habit to end — kind of like credit card debt. Beyond the immediate concerns, credit card dependency can ruin your credit and hurt your chances of enjoying longer term financial goals. Make a resolution to lose your credit card “addiction” in the new year. Instead, make friends with credit. Plan for a future of living within your means while borrowing responsibly.
Family time — Make a will
Next on the list of popular resolutions is spending more time with loved ones. The holidays are a great time to rekindle connections with friends and family that may have lapsed. That same realization that life is short can be a wake-up call to put your estate in order. Start by making a will, if you don’t have one. Later, your family can focus on helping each other through the difficult time rather than dealing with bill collectors and lawyers trying to divide your stuff. Make an appointment with an estate planning attorney to ensure you’re covered.
Get healthy — Start saving for retirement
Eating right and taking care of yourself are good steps toward a healthy future and ranks at the top of New Year’s resolutions. To set yourself up for a healthy financial future, start planning for your retirement. At the very least, commit to maxing out your employer or personal retirement contributions. Set up automatic withdrawals that go into your employer sponsored retirement account or individual retirement account (IRA) to make the process easier.
Cut down on stress — Boost your savings
Resolving to stress less in the new year can improve your life dramatically. Likewise, starting the year stressing less about your financial woes can help your plan to live better. So, resolve to take action. Try the 52-Week Challenge for an easy and fun way to take small steps toward a bigger financial reward!
Article provided by Local Government Federal Credit Union.
The advice provided is for informational purposes only.