Jan 14, 2022 / Money Tips
The New Year is perfect time to evaluate your finances. In fact, more than half of Americans make some form of financial resolution at the beginning of the year. It’s an important first step, especially considering almost half of those who make a resolution are successful in keeping it 6 months later, compared with just 4% among those with similar goals who fail to make an actual resolution. Statistics aside, here are a few popular resolutions to help you reach your financial goals this year.
Resolutions are a means to an end. That end goal, whatever it happens to be for you, can fuel your motivation to make and keep your personal financial commitments. Take some time to decide where you want to be in six months or a year from now. Maybe you want to meet a specific savings threshold. Maybe you want to save enough to buy a home, a car, or pay off debt. Whatever your financial goals happen to be, make them a clear part of your financial journey and custom tailor your resolutions to help you accomplish your objectives.
If for no other reason, making a budget at the beginning of the year gives you the chance to evaluate your spending from the past 12 months and help you see exactly where your money is going. It also gives you a chance to evaluate your assets and liabilities to determine your own personal net worth. This gives you a great starting point to set goals for the coming year. If you think you’ve spent too much on a particular category, make a goal to limit spending within the parameters of a monthly budget. Doing so can help you increase your savings and meet your stated financial goals for the coming year.
Whether retirement is fast approaching or it’s still a ways away, consider taking some time to evaluate your readiness for retirement. How much did you save last year? How much do you need to add to your savings to stay on track? As you evaluate your personal retirement plan, you may want to think about opening new investments or adding to existing investment accounts. A Traditional IRA is one of the most popular ways to save for retirement because your contributions are tax-deferred and earn compound interest over time. On the other hand, a Roth IRA isn’t subject to taxes at the time you withdraw funds. As always, we’re here to help you reach your retirement goals. If you have questions about which term deposit is right for you, come chat with one of our helpful financial specialists.
Another common New Year’s resolution, paying down debt, can help you save money, increase your net worth, and put extra cash into achieving your financial goals. There are a few different ways to go about eliminating debt, many of which can involve a financial partner that’s willing to help lift your debt burdens. A home equity line of credit can help you prepare for larger expense that you want to make in the future, such as renovations or weddings. And, a debt consolidation loan can help you eliminate multiple lenders and simplify your payments so you can take control of your finances and your credit. Both are great options to help you focus your debt elimination goals for the coming year.
As you evaluate your finances, keep your big-picture goals in mind, make realistic resolutions, and team up with a financial partner that’s willing to help you every step of the way. To learn more about how you can boost savings, decrease debt, and reach your financial goals in 2022, stop by a branch or call one of our financial experts today.