New year, new money habits. Every year, many aim to spend less, save more, and pay down their debt — how can you make this the year you stick to your financial resolutions? Here's a list of helpful tips to help you achieve your dreamiest resolutions.
Don’t just resolve to be better with money this year. Set realistic, measurable goals to help you stay on track and ensure you’re making progress. To make it easier, make sure the goals you set are SMART:
Specific
Measurable
Achievable
Relevant
Time-based
Goals that follow these 5 rules have been proven much more attainable than those that don't.
Creating a budget can take time and lots of number crunching, but the real challenge of financial wellness is sticking to that budget. Many people don’t keep to their budget because they spend money without consciously thinking about it.
Resolve to be more mindful about your spending, which means thinking about what you do when you pay for a purchase. You can accomplish this by thinking about what you’re buying and how much you’re paying for it. Gain more awareness about your spending by staying off your phone while completing in-store transactions.
It’s basic psychology: When we have to answer to someone, we’re more likely to stick to our resolutions. Choose a friend in a similar financial bracket and with a comparable relationship with money. Ideally, they will have the same resolve to set and stick to those financial resolutions together.
To make it even easier, use a money management app to help track your spending, find your weak areas, and stay accountable for your friend.
In an era where some people can go without touching a pen and paper for days, writing down New Year’s resolutions can seem obsolete, but that doesn’t mean it shouldn’t happen. The act of putting your financial resolutions into writing will help to imprint them on your memory. Plus, you’ll have a list of your resolutions to reference throughout the year to help keep you on track.
Sticking to your financial resolutions isn’t easy. Follow the tips outlined above to make this year you get your finances into shape. Find more like this on our MoneySmart Tips blog. Happy New Year to all of us at Elevate Credit Union.