It’s the first week of 2018, and people everywhere are outlining their New Year’s resolutions. So many people around the world make resolutions related to their finances and fiscal responsibility, as there is no dearth of ways one can make improvements to how they manage their finances. Whether it’s something as simple as cutting out one frivolous luxury a week, or as complicated as a complete overhaul of their recording systems, the resolution possibilities are seemingly endless.
As part of our mission to give our members a better banking relationship, we have a few ideas for good New Year’s resolutions when it comes to you finances and your financial health. Here are some of our favorites.
- Understand the depths of your debt. Regardless of how much you may owe, it’s imperative to understand exactly where your debt comes from, and what goes into your monthly payments. Make sure you know exactly how much you owe before your debt is paid off, and understand your interest rates as well.
- Increase your financial literacy. No matter what time of the year it may be, it’s never too late to develop strong financial literacy. Our weekly financial blog at Polam FCU is a great place to start when it comes to reading material to help you on your journey to fiscal security.
- Create a budget – and keep it. This is definitely one of the most important elements to fiscal success. When you understand where your money is coming from and where it’s going every month, you’ll be able to plan better for emergencies, vacations, and big ticket purchases. A good way to start is to study your transactions from the last month or two and determine your income and expenses, and use that information to measure how much you can spend every month. It’s best to overestimate to ensure you have a bit of a cushion, and it’s also a good idea to review your budget on a weekly basis.
- Get creative when it comes to food and clothing. Being mindful of your spending doesn’t mean you have to be boring – on the contrary, actually. When it comes to grocery shopping, veer off the beaten path and check out discount grocery stores such as Aldi or Grocery Outlet, where you can not only save money, but also find brands you won’t normally find at a more mainstream grocery store. Consignment or thrift store shopping for clothes can net you some great deals, and many people have found quality brand labels while buying secondhand.