The end of the year is the best time to set some new goals that will revitalize your life. If your financial well-being could use a boost, there are a few things you can do to put yourself in a better position in the upcoming year. Here are five ideas you can implement to help you achieve your financial New Year’s Resolution.
1. Shop for the Right Credit Card
If your financial New Year’s resolution is to build your credit, getting the right credit card can help you do that. Putting reoccurring expenses on your card, and paying off the balance in full each month, will allow you to establish a credit score. Having a good credit score comes in handy when you are trying to get approved for home and auto loans, so be sure to use your credit line wisely. You can use financial research sites to find the right credit card for you.
2. Hire an Accountant
Accountants give you back your money and your time. If you currently run a small business, or you plan on starting a side hustle next year, you need to start looking for a certified accountant to help you. Accountants are tax experts, so they will help you get all the breaks you deserve while ensuring you don’t accidentally underpay Uncle Sam. Some financial tasks are too complicated to figure out on your own. Hiring an accountant will make it a lot easier to reach your financial goals for the new year.
3. Create a Budget
It’s safe to say that you won’t be able to reach your financial goals without making a budget first. There are tons of apps and software programs that can help you figure out how you are spending your money. If you aren’t technologically savvy, you can get by just fine with a pen and a piece of paper. Look at your bank statements to see where your money is going and categorize your expenses. You can make a plan to reallocate your excess spending to align with your financial goals. As your goals change, you can reconfigure your budget.
4. Automate Your Bills and Savings
If you struggle with paying bills on time and consistently putting money away, you can take advantage of automatic bill pay and have your employer transfer a portion of your check to a savings account via direct deposit. Once you automate everything, you won’t have to worry about it or remember to write it down in your calendar. You’ll never miss a payment again, and you’ll be able to quickly build your savings without a second thought.
5. Become Financially Literate
No matter what your New Year’s resolution is, the best thing you can do to achieve it is to become financially literate. There are so many excellent books, podcasts, and articles on the internet that can help you get educated on everything from budgeting to investing. The more you know about how money works, the easier it will be to make money work for you.