As we approach the dawn of a new year, it’s an opportune moment to reflect on our financial habits and set resolutions that pave the way for a healthier, wealthier future. New Year’s resolutions for financial health and wellness can be transformative, providing a roadmap to achieve financial goals and cultivate lasting habits. Let’s explore some impactful resolutions to set you on the path to financial fitness in the coming year.
1. Create a realistic budget—and stick to it
The cornerstone of financial health is a well-constructed budget. Start the year by creating a realistic budget that reflects your income, expenses, and savings goals. Track your spending to identify areas where you can cut back and allocate more funds towards savings or debt repayment. Utilize budgeting apps or spreadsheets to streamline the process and gain a clearer understanding of your financial landscape. The Brigit app’s Finance Helper is a great (free) tool to help you track your spending.
2. Build an emergency fund
Life is unpredictable, and having a financial safety net is crucial. Make it a resolution to build or reinforce your emergency fund. Aim to set aside three to six months’ worth of living expenses in a separate savings account. Having this buffer will provide peace of mind and financial security in the face of unexpected expenses or emergencies.
3. Choose a debt reduction strategy
If you carry any form of debt, whether it’s credit card balances, student loans, or a mortgage, prioritize a debt repayment strategy. Allocate extra funds towards high-interest debts, and consider debt consolidation options if feasible. Establish a realistic timeline for debt repayment and monitor your progress regularly. Reducing debt not only frees up financial resources but also contributes to long-term financial well-being.
4. Invest for the future
Investing is a powerful tool for building wealth over time. Resolve to educate yourself about investment options, whether it’s stocks, bonds, mutual funds, or retirement accounts. Consider consulting a financial advisor to tailor an investment strategy that aligns with your financial goals and risk tolerance. Consistent and informed investing can significantly contribute to long-term financial health.
5. Review and improve your credit score
Your credit score plays a pivotal role in your financial life. Regularly monitor your credit report for inaccuracies and work on improving your credit score. Pay bills on time, reduce credit card balances, and refrain from opening unnecessary credit accounts. A higher credit score can lead to lower interest rates on loans and better financial opportunities. Brigit’s Credit Builder can be a useful tool to help you—you guessed it—build credit.1,2
6. Educate yourself
Financial literacy is an ongoing journey. Commit to expanding your knowledge about personal finance throughout the year. Read books, attend workshops, or follow reputable financial blogs to stay informed about current trends and strategies. The more you understand about managing money, the better equipped you’ll be to make sound financial decisions.
7. Negotiate and cut unnecessary expenses
Take a proactive approach to your finances by regularly reviewing your recurring expenses. Negotiate bills, shop around for better deals on insurance or utilities, and cut out unnecessary subscriptions. Small savings in multiple areas can add up, allowing you to redirect those funds towards your financial goals.
8. Set specific financial goals
Rather than vague resolutions, set specific and measurable financial goals for the year. Whether it’s saving for a vacation, a down payment on a home, or contributing more to retirement accounts, clearly define your objectives. Break down larger goals into smaller, achievable milestones, and celebrate your successes along the way.
9. Regularly reassess and adjust
Financial circumstances change, and your goals may need to be adjusted accordingly. Make it a habit to regularly reassess your financial situation and adjust your strategies as needed. Life events, economic changes, and personal priorities can influence your financial landscape, and staying adaptable ensures your financial plan remains relevant and effective.
The bottom line: prioritize your financial health for the New Year
As you ring in the new year, embrace the opportunity to prioritize your financial well-being. These resolutions are not just commitments; they are investments in your future self. By cultivating healthy financial habits and setting realistic goals, you are taking significant steps toward achieving the financial fitness and wellness you aspire to. Remember, it’s the small, consistent actions that lead to lasting financial success. Here’s to a wealthier and more prosperous new year!
1Impact to score may vary. Some users’ scores may not improve. Results will depend on many factors, including on-time payment history, the status of non-Brigit accounts, and financial history. Results show that customers with a starting credit score of 600 or below were more likely to see positive score change results. A Brigit subscription is required. Credit Builder loans are not available in all states.
2Brigit paid monthly subscription required; ranging from $9.99 – $14.99. Cancel anytime.