5 of the Best Financial New Year’s Resolutions
The new year is a great time to get your finances in order. This may not be your idea of fun, but a few changes here and there will clear your mind and allow you to feel better about the months to come. Along with your average, run of the mill News Year’s resolutions – such as losing weight and working out 15 times a week (like that will ever happen) – it is good to have at least one that targets the financial side of your life. If you don’t know where to start, here are five ideas to consider:
1. Create a Budget
If you don’t have a budget, now is the time to create one. Even if you do have a budget in place, the new year presents a nice opportunity to review the details and make changes for the better.
A budget can help you understand how much you earn, how much you spend, how much you save, and much more.
2. Save. More. Money.
Let’s face it: most people share the goal of saving more money. However, some people never take the first step in making this dream come true.
The new year is here and you are once again presented with a fresh slate. Will you implement a plan that allows you to save more money? Even if you don’t think you have what it takes to save, a few basic changes could alter your mindset.
Here is an idea: don’t spend a few dollars every day on coffee and snacks. Instead, save this money in a safe place and watch it grow. At the end of the year, you’ll be happy with the hundreds of dollars you have saved.
3. Review Your Insurance Documents
When was the last time you reviewed your car insurance policy? How about your home insurance coverage? If you don’t remember the finer details of your policy, don’t hesitate in conducting a thorough review.
Taking this one step further, keep an eye out for any changes that make sense. Should you lower your deductible? Should you combine your home and car for more of a discount? Should you increase or decrease your coverage?
Tip: if you find it difficult to make important decisions, turn to an insurance broker for assistance.
4. Buy Life Insurance
Okay, you have put this off long enough. The time has come to make this purchase. Not only will it give you peace of mind, but it will do the same for your family.
Compare a minimum of three quotes and companies. Decide what you can afford. Purchase a policy. There is no reason to overcomplicate the process.
5. Give More to Charity
This is a financial New Year’s resolution that is often overlooked, but undoubtedly one of the best. When you give more to charity, you will feel better about yourself. More importantly, you are doing something that benefits somebody else.
What will you do?
You have two options:
- You can continue down the same path, hoping and praying you reach all your financial goals.
- You can take the bull by the horns, stop talking about making changes, and make 2016 the year you reach new heights.