If you enjoy taking the opportunity a new year offers to make resolutions, make sure financial resolutions are a part of that focus. Formulating financial resolutions this year can help get you closer to long term goals like retirement, a large purchase, business ownership or debt elimination.
Here are just a few practical ideas to jumpstart your planning.
1. Consider a Cash Diet
Credit cards are the “fast food” of the financial world; readily accessible, convenient and harmful if over indulged. A steady diet of easy credit can quickly land you in a financial predicament, so if you utilized credit a little too liberally this holiday season, consider giving your credit card a month or two off while you go on a cash diet and trim down that bloated holiday balance.
2. Impose a Spending Ban
If specific discretionary spending categories are a bigger weakness for you than the method of payment for them, consider imposing a spending ban on that category for a set period of time. Removing an area of spending that you are particularly susceptible to creates a positive tension that heightens and clarifies your focus on financial goals.
3. Make a Physical Fitness Resolution
Yes, this goes hand in hand with your financial resolutions. There’s a strong correlation between physical health and financial health, so continue to make your physical fitness resolutions and your financial resolutions might just be an unintended beneficiary. Healthy, active lifestyles have shown to significantly lower health care costs both immediately and in the future, and regular exercise coupled with healthy financial behavior, improves mental health and financial confidence while reducing money-related stress.
4. Don’t Be a Scrooge
If you’ve read this far and are feeling pretty good about your financial position, make one of your resolutions to be a more generous giver in 2020. Charitable giving needs exist in all of the 11 months of the year not named December and options for giving methods are plentiful. Browse our blog articles for ideas to maximize your giving, and make 2020 the year you create a lifetime charitable giving strategy.
5. Partner With Someone for Accountability
Despite best intentions, many New Year’s resolutions fall by the wayside as the year progresses. One way to avoid this natural attrition is to partner with another individual for accountability. Accountability is imperative for success, and Stewardship Advisors would love to be that trusted partner for you to help achieve your financial goals in 2020.