The start of a new year is a great time to take a look at your finances with fresh eyes. If you’re considering making some money resolutions, you’re not alone; 45% of Americans say their top financial goal for 2020 is saving more money.1
The only catch with resolutions is that it’s all too easy to fall off the bandwagon by February. But, if you adopt some good habits, you’ll set the stage for financial wellness all year long.
- Set S.M.A.R.T. money goals. Paying down debt or saving money might be on your financial goal list for the New Year. If you want to make the most of your money, keep your goals S.M.A.R.T.: specific, measurable, achievable, realistic, and time-bound.
- Schedule regular check-ins with your money. Set aside time every month to review your budget, spending, savings, and debt. Also, check in with your money goals each quarter to see how much progress you’re making.
- Regularly track spending. Money can slip through the cracks when you don’t keep track of your spending. Logging into your online banking once a day or once a week and scanning your spending can help you find and plug money leaks before they get out of control.
- Use the 48-hour rule. The next time you’re tempted to make a large purchase, impose a two-day waiting period. This gives you a chance to decide if what you want to buy is worth the money and aligns with your goals.
- Round-up to save. Making a habit of rounding up when you spend can be an easy way to save. If you spend $25.50 at the grocery store, for example, round it up to $30 and put the extra $4.50 in savings.
As the New Year gets underway, remember that habits can take a few weeks to sink in. When you start a new money habit, be patient, practice regularly, and give it time to become part of your regular financial routine.
Fulton Bank, N.A. Member FDIC.
Source:
1Principal Financial Services, Inc. “Keeping your spending in check,” December 3, 2019. www.principal.com/about-us/news-room/news-releases/keeping-your-spending-check