New Year's resolutions are typically made with great deliberation and conviction - especially after devouring that second piece of Aunt Betty's famous double chocolate fudge cake Jan. 1 at 10 p.m. In your mind, the guilt of having crossed that calorie laden line one too many times, necessitates a lifestyle change. The first step is recognizing that an acquired habit has somehow challenged your sense of self-control. You make plans for the dieting to commence at promptly 7 a.m., Jan. 2.
Not all New Year's resolutions involve making new food choices and not all resolutions are followed through, as we all well know. But because it's known for being a good starting point, why not examine other areas of life that could benefit from some fine tuning?
"Overspending" comes in second to "overeating" as the most chosen reason for making resolutions in the New Year. Just as a reduction in portion size helps one obtain a more manageable waistline, obtaining good financial health can help reduce stress as well as that stack of bills on the counter.
The following "Five Steps to a New Financial You in 2017" are taken with permission, from http://www.americasavesweek.org
1. Take Stock of Your Finances. Take account of all your income, expenses and existing savings/investment accounts. No matter how nice you were, don't forget to include any so-called, "naughty" debts you may have incurred in the spirit of the season
2. Sketch out a budget template for the year to come. Think big picture. Use a worksheet (available for download from the AmericaSaves website) and find the method that you could use in 2017. Rough out what you would like it to look like from month to month. Be pragmatic about your needs and be honest about where your money is actually going. Plan to make adjustments and really dig into your spending habits when you check back in on a regular basis.
3. Check your credit report. It is your legal right to get a free copy of your credit report every 12 months from each of the three major credit reporting bureaus. http://www.AnnualCreditReport.com should be your next scheduled visit. Add it to your annual holiday calendar or divvy up the bureaus to get a free report from a different bureau every four months.
4. Set up bank and credit alerts and financial reminders. Whether you're at your computer or on your device, you are in the ideal position to receive notifications about upcoming payments, suspicious activities on an account, transactions over a certain dollar amount, low balances and more. Find out what online services your financial institution offers and supplement what they don't with an app or calendar reminder. It's all right there at your fingertips.
5. Make a commitment to yourself to save. Those who make a commitment to themselves and family to save usually save more than those who don't. Think of this as your New Year's Resolution.
A new financial you is an achievable goal for 2017. Make your commitment today by taking the AmericaSaves Pledge and get regular advice and support from AmericaSaves* while you save money. Visit http://AmericaSaves.org
*AmericaSaves is a campaign coordinated by the non-profit, Consumer Federation of America (CFA) and is dedicated to helping individuals save money, reduce debt and budget wisely.
No matter how, where or when you start to implement your resolutions, "Just Do It!" Changes are never easy but neither is standing still. Change comes about one day at a time. Setting financial goals is the first step towards achieving them. When setting goals, make sure you make them S-M-A-R-T:
S-Specific - Having something tangible to strive for allows you to test its importance.
M-Measurable - Can you check your progress easily?
A-Achievable - Do you have the knowledge, the skills, and the ability to reach your goal?
R-Realistic - Is the goal reasonable for you?
T-Time Bound - What's a reasonable amount of time for you to reach your goal?
May you enjoy a healthy and happy 2017! Let's check in again next January, ok?
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