A dipstick analysis by Fidelity Investments concluded that 67% of Americans said they’re planning to make financial resolutions for 2020. Saving more and paying down debt topping the resolution chart.
In fact, making such resolutions is easier than keeping them. A third of New Year’s resolutions don’t even make it past the first month, two studies found.
Any specific financial resolutions for 2020, can increase the odds of keeping them. But if you build a strong foundation for success there is nothing the odds can do.
Find below the tips to not let the odd ways of life get down from your resolutions:
We-vibe well with positivity
It is human nature to look for possibilities than being stranded with limits. This helps you achieve your goal and have a positive outlook on life.
Example, if you could turn to folks you already know for support. But what if you’re not comfortable discussing your $10,000 in credit card debt or lack of savings with family, friends or co-workers?
Sharing financial goals is however the cliché and taboo driven objective. Here’s why!
The benefits one can reap from discussing the mere financial goals is enormous. But it certainly depends on the people. Dealing and seeking advice from the right people plays an important role.
Join a group
FACEBOOK, an ideal solution to many such breakthrough goals or ideas. If you are aiming at building a road map to personal finance, as a stranger their nothing to lose except that we receive better advice.
Alicia McElhaney is the founder of She Spends, a newsletter and community specifically for women and non-binary individuals to discuss personal finance. The community has a Facebook group with more than 1,600 members who regularly discuss their own money goals or ask questions to help navigate their financial health. McElhaney says she has seen first-hand how successful such a group can be.
“People have been encouraged to ask for raises, make changes to paying off their student loans, apply for different jobs after talking through their work environments, and people even say they contribute more to charity now from what they see in the group and newsletter because they see that their peers are contributing, and that’s exciting to me,” McElhaney says. “[The group] really is effective for a lot of people.”
Best to be very knit picky!
Creating financial goals is great. But if you don’t understand the inner workings of those goals, you can miss opportunities to make progress towards achieving them.
- There is a common initiative and drive when a Facebook group holds yourself accountable. We perform and feel concerned only when we see updates from other members. Better yet, staying motivated by seeing others achieve their goals.
- Estimate and proactiveness can play a vital role in changing your financial life. Get back in touch with investment and its affecting factor.
- The benefits you can reap from maturing money on the due date. To not just go completely in-depth the finances but to be aware of the factors that can affect the outcome.
- Not sure where to start? There are plenty of educational resources to help consumers become well versed in their financial lives.
Autosave your savings!
We are more interested in earning interest than paying out.
By creating an automatic savings plan it only takes the guesswork out of saving each month. With an automatic savings plan, you handle the initial setup and it’s hands-off the rest of the way. If you’re willing to amplify savings efforts, establish an automated plan. This doesn’t happen in the next five minutes or overnight.
If you currently have direct deposit through your employer, the simplest and most effective way to establish your automatic savings program is to have part of your paycheck directly deposited into your savings account.
How to Make the Most of Your Automatic Savings Plan
Creating an automatic savings plan is a step in the right direction, financially. But it’s important to make sure you’re utilizing it fully. You can do that by:
- Regularly reviewing your budget to determine whether you can find additional money for savings.
- Setting clear goals for your automatic savings, both for the short- and long-term.
- Utilizing a high-yield savings account to earn the best APY possible on the money you’re setting aside.
- Choosing a savings account with minimal fees so you get to hold on to all the interest you’re earning.
- Withdrawing from your savings only when truly necessary.
Be alert on Credit score & record.
Besides serving as a motivator to your financial goals, it makes sense to review your credit bureau reports.
- Pay close attention to the credit scores derived from the reports if any of it includes, buying a new car or home, having a strong credit score could save you big bucks.
- The credit report could also come into play if you’re looking for a new job, renting an apartment or even applying for insurance. Setting our primary financial goals can increase confidence and wave away the hind stress of financial burdens.
- One can exercise your legal right to get a free copy of your report annually from each of the three major credit bureaus. Look particularly for incorrect information about credit accounts—information that could be a mistake or red flag that someone is misusing your identity.
Let the student loan add to your benefit.
It is one of the leading financial assortments for Indians. If you have one, your student loans likely cast a shadow over all your finances. Here’s how!
- Repaying your student loans in full might not happen in 2020, but it’s likely a goal in the near future. It is!
- Student loans are a blessing in disguise: You cannot count on your student loan servicer to give you correct information. Now is the time to take full control of your repayment process.
- For the students travelling abroad or walking into foreign countries for higher studies, look for audit reports.
- These mistakes included misinforming borrowers about their payment options and not properly calculating payments for those on income-based repayment (IBR) plans. See wherein you could benefit from and pivot from that point for an extension.