It’s time to make a money resolution that you’ll actually stick to. Setting a financial resolution is the perfect way to start the new year with a better plan to manage your finances and reach your money goals.
Too often, money resolutions fail because they’re not properly planned or realistic. That’s why it’s important to approach money resolutions with a strategic plan and the right attitude.
The first step in setting money resolutions is to assess your current financial situation, including your income and expenses. This will help you create realistic money goals for yourself, such as setting aside money for savings or paying off debt. You should also consider any changes that have occurred recently, such as a recent windfall (hello, holiday bonus) or increased expenses.
To kickstart your success, identify one money goal to accomplish this year. Here are 10 financial resolutions and money goals in this article.
These are the most crucial areas most people fall off the bandwagon, so be sure to pay close attention to them if you want to see a change in your finances by this time next year. These goals will ensure long-term success and assist you in starting on the right foot. So let’s get into them!
1) Save More
To save more money is, unsurprisingly, the most popular financial resolution. Whether you’re finally controlling your spending or just prioritizing saving, saving more will help you increase your financial resilience and reduce your money stress. You can jumpstart this process by increasing your 401(k) contributions, setting up automatic transfers to a high-yield savings account, and reducing wasteful spending, particularly during the holiday season.
Nav.it’s automated saving helps you decide how long it will take to save for your goal or calculate you need to put away each paycheck.
2) Improve Your Credit Score
If your credit could be better, or you plan on making a new purchase, make it one of your top money goals for 2023.
Ideally, you want to aim for a score above 700.
You can improve your credit score in various ways, including paying your bills on time and in full, setting up autopay to help you with this, getting rid of debt, minimizing the number of new accounts you open, and cutting back on your spending.
A credit card might be advantageous for you as well. You can receive cash back, points, or miles that you can use to offset expenditures by using many of the best credit cards’ competitive rewards and statement credits.
3) Create a Personal Budget
While keeping track of your spending may be a helpful tool to understand where your money goes each month, some people find that budgets seem restrictive. However, categorizing your spending allows you to establish your spending limits and help you create opportunities to save money.
All of your fixed expenses should be included in your budget first, such as:
- Rent or a mortgage
- Your phone/s
- Food, etc.
You should then calculate how much cash you have left over for discretionary expenses like dining out, shopping, and entertainment.
While you could try to download statements from your bank or hand write everything, you could also use an automated money app like Nav.it.
Additionally, most bank cards allow you to examine your overall yearly expenditure by category. This is useful when creating a budget for the coming year.
4) Pay Off a Credit Card Entirely
You’re just one of many having trouble paying off credit card debt. According to Experian, 61% of Americans have a credit card, and their average load is $6,194. So it’s understandable why so many individuals want to pay off their credit card debt in the next year.
If you have credit card debt, think about transferring it to a credit card with a balance transfer feature. These cards give 0% APR for up to 21 months. This option will spare you time to pay back your credit cards and give you that breathing room you need.
Things to remember if you’re tackling your credit and credit card debt with your 2023 financial resolution.
Having too many credit cards could damage your credit score. If you’re applying for multiple credit cards, applying for one while paying off another might seem like a good idea. But having too many open accounts can harm your credit rating. Even though you won’t see the impact immediately, it’ll eventually show up on your report.
Caution when using credit tracking sites
Credit reporting sites like CreditKarma reports aren’t always accurate reflections of what happens in real life, either. For instance, paying a bill late doesn’t necessarily add interest to the balance. While you can use them as a general reference, you should try to pull your credit directly from a bureau at least once a year.
If you find yourself exceeding your limits, call your bank immediately and ask for help.
5) Avoid Banking and Overdraft Fees
one of the best money resolutions you can make is to avoid banking and overdraft fees. Overdraft fees can quickly add up, leaving you with less money in your pocket at the end of the month. But how do you go about avoiding these pesky charges?
Here are a few tips to help you stick to your money resolution and avoid banking and overdraft these fees.
First, make sure you’re aware of how much money is in your account. Check your balance regularly and opt for text or email alerts from your bank when your balance dips below a certain amount. That way, you’ll have time to transfer money or make other necessary arrangements.
Second, set up direct deposits from your employer, a pension, or another source of income to ensure money is in the account each month. Even better, split the money between accounts so you can easily track what money goes where and don’t accidentally overdraw one account.
Third, set up overdraft protection if your bank offers it. This ensures that money will be transferred from a linked savings or money market account in case of an overdraft. While this can help you avoid hefty fees, it is important to remember that there are usually transfer fees associated with this type of protection so make sure you’re aware of any fees that may be charged.
Lastly, if all else fails and you incur an overdraft fee, contact your bank or credit union as soon as possible to ask for a waiver or reduced fee. Many banks are willing to work with customers in this situation so don’t hesitate to reach out and ask.
Making money resolutions this new year can help you be more mindful of your money, and avoiding banking and overdraft fees is the perfect resolution to get started!
6) Buy a House
Buying a house, especially with rising interest rates, can be a big step that requires serious commitment, but it can be an incredibly rewarding experience. After all, homeownership provides financial security, the chance to build equity over time, and the opportunity to create lasting memories. Plus, you won’t have to worry about rent hikes or pesky landlords.
When considering whether or not to buy a house, be sure to focus on what is best for you and your family—not necessarily what others around you are doing. Buying a house isn’t right for everyone, and it’s important to consider the money, time, and energy it will take to make it happen. But if you’re ready and willing, a money resolution of homeownership could be the best decision you ever made.
So, don’t let anyone else tell you what money resolutions to make this year—listen to your own intuition, do your research, and then decide what is right for you. If buying a house is part of your money resolution, you’re on the right track for a great 2023!
7) Increase Income
Thinking of ways to increase your income can leave you stumped if don’t know where to start. The truth is, we don’t need to do anything special to earn extra cash. All we need to do is reflect on where we can find opportunities to sell and market them.
There are many opportunities to earn extra money. Here are some ideas:
- Ask for a raise or bonus (or start upskilling so you can leverage your new talents for more income)
- Get a part-time job
- Start a low-cost side hustle
- Declutter your home and sell your stuff; start a yard sale
- Cut expenses wherever possible
- Create passive income
8) Sign Up For a Credit Monitoring or Identity Theft Protection Product
Even if your data has been hacked, it doesn’t always indicate that identity thieves have exploited it. However, because your information and numbers are public, you always run the danger of becoming a victim of identity theft. Credit freezing is your greatest line of defense, but adding monitoring may also be beneficial.
By signing up for a credit monitoring or identity theft protection product, you are giving yourself a little more assurance of your money being safe. By adding this extra safety step the likelihood of being scammed and losing your money to a thief is considerably lower.
9) Establish an Emergency Fund
In the case of an emergency, you don’t want to lack cash. Emergency cash may be a lifesaver when unanticipated problems crop up, such as losing your job, getting into an accident, or contracting a global epidemic.
The new year is a great time to start replenish your emergency fund. You can determine the size of your emergency fund by looking at your monthly costs. Along with your rent or mortgage, this fund should also cover your essential outgoings like utilities.
Although most financial experts agree that this sum should be equivalent to three to six months’ worth of expenses, it never hurts to plan ahead and estimate how much money you would need in an emergency.
10) Make a will and work on your financial legacy
You have your whole life ahead of you, so why should you worry about your financial legacy?
If money resolutions are on your list for 2023, estate planning should be too! It may not sound as fun and exciting as a new hobby or diet, but it’s an important step to take in protecting yourself and your family. Get started by creating a will, signing up for life insurance and disability insurance, and creating an advanced directive. This will help ensure that your money and assets are distributed as you wish if something happens to you.
Estate planning may seem daunting, but taking the time to do it now can save a lot of stress and money down the road. So why not make estate planning one of your money resolutions for 2023? It’s a smart way to protect your money and ensure that your wishes are carried out.
Making a will, if you haven’t yet, might help you and the security of your family in the future. If you don’t have one, your state’s laws will decide who inherits your assets and property after your death.
You most likely need a will if you’re uncertain whether or not you need one. But most crucially, having a will is highly advised for anybody with kids, a spouse, or a healthy financial worth. We can all agree that having a will that protects your family and your possessions is crucial.
Once you identify your financial resolution, follow these next steps.
Next, create a plan for each money resolution. This should include short-term and long-term goals that will help you stay committed and reach your money goals. Finally, put your money resolutions into action by creating an action plan with tasks you can complete daily, weekly, or monthly. This plan should be realistic and achievable, as having too many money goals can lead to burnout. Taking small steps towards your money resolutions will help you stay motivated throughout the year and show that you are progressing towards your goals.
In addition to creating a money resolution action plan, it’s important to track your progress throughout the year. Not only will this help keep you motivated, but it will also let you know if you are making any headway toward accomplishing your money goals. Setting reminders for yourself or having someone else hold you accountable can be a great way to stay on top of your money resolutions and make sure they become a reality.
Finally, don’t forget to reward yourself for your successes! Celebrating even small accomplishments can be a great way to stay motivated and ensure you are actually enjoying the money resolutions journey. Whether it’s taking a break for coffee or treating yourself to something special, allowing yourself the opportunity to appreciate your hard
In conclusion, if you want to stress less about money in 2023, these 10 money resolutions and goals will assist you in accomplishing that.
These stages will help you to reach your goals, whether they include putting money down for retirement, eliminating debt, or beginning a new line of work.
If you need an extra hand, Nav.it is a money mindfulness app that provides financial tools and in-app money coaching to accomplish money goals like your 2023 financial resolutions, save more, and stress less about money. To start your progress today, sign up here to use Nav.it on your money-saving journey.
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