Financial resolutions for the new year

Start Your Journey to Financial Well-being

Published January 1, 2024

By Robyn Coffey | Retail Manager | York Branch

As the calendar turns to a new year, it’s the perfect time to reflect on the past and set goals for the future. One area that deserves our attention is our finances.

Making financial resolutions for the new year can pave the way for a more secure and prosperous future. Whether you want to pay off debt, save for a big purchase, or invest for retirement, setting clear financial goals and creating a plan can make all the difference. Here are some essential financial resolutions to consider for the upcoming year.

Assess Your Current Financial Situation:

Before setting any goals, it’s crucial to evaluate your current financial state. Take a close look at your income, expenses, debt, and savings. Understand where your money is going and identify areas for improvement. This evaluation will provide a solid foundation for setting realistic goals and making necessary adjustments.

Create a Budget:

A budget acts as a roadmap for your financial journey. Start by categorizing your income and expenses, including fixed costs like rent or mortgage payments, utilities, and debt repayments. Then allocate funds for variable expenses like groceries, dining out, and entertainment. Consider setting aside a portion of your income for savings and emergencies. By following a budget, you gain control over your spending, reduce financial stress, and make progress toward your goals.

Reduce Debt:

Debt can be a significant burden, both financially and emotionally. Make it a priority to tackle your debts in the new year. Begin by listing all your debts, including credit cards, student loans, and personal loans. Focus on paying off high-interest debts first while making minimum payments on others. Explore strategies like the debt snowball or debt avalanche method to accelerate your progress. Consider debt consolidation options that often offer lower interest rates or lower monthly payments to help you streamline managing your debt.

Save for Emergencies:

Life is unpredictable and having an emergency fund is essential to navigate unexpected financial challenges. Aim to build an emergency fund equivalent to three to six months’ worth of living expenses. Start small by setting aside a portion of your income each month and gradually increase the amount as you make progress with debt repayment. Having a well-funded emergency fund provides peace of mind and protects you from resorting to high-interest debt during unforeseen circumstances. Our staff at Midwest Bank can help you open a savings account and get started on your emergency fund.

Set Specific Savings Goals:

Apart from emergency savings, identify specific financial goals you want to achieve in the new year. It could be saving for a down payment on a home, planning a dream vacation, or starting a retirement fund. Break down these goals into smaller, actionable steps. Determine how much you need to save each month to reach your targets within your desired timeline. Automate your savings by setting up automatic transfers from your checking account to a separate savings account, making it easier to stay on track. Midwest Bank also offers our RoundUp program that automatically rounds up your debit card transaction to the next dollar and then automatically transfers the difference into your savings account. Saving money has never been easier.

Remember, education, consistency, and discipline are key to achieving your financial resolutions. Start small, celebrate your milestones along the way, and stay focused on the bigger picture.

Robyn Coffey

Educate Yourself:

Knowledge is power when it comes to personal finance. Make a commitment to expand your financial literacy in the new year. Read books, listen to podcasts, or take online courses to learn about investing, budgeting, and retirement planning. Understanding the basics of personal finance empowers you to make informed decisions, take advantage of opportunities, and avoid costly mistakes.

Review and Optimize Your Investments:

If you have already started investing, the new year is an excellent time to review your investment portfolio. Evaluate the performance of your investments, rebalance your portfolio if needed, and explore new investment opportunities. Consider consulting with a financial advisor to ensure your investments align with your long-term goals and risk tolerance. If you need a trusted financial advisor, contact Midwest Wealth Management today and set up a free consultation.

Setting financial resolutions for the new year provides a fresh start and an opportunity to improve your financial well-being. By assessing your current situation, creating a budget, reducing debt, building savings, and setting specific goals, you can take control of your finances and move closer to financial freedom. Here’s to a year of financial growth and prosperity!

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