4 Financial Resolutions You Can Keep
1. Calculate Your Net WorthIf you haven’t recently (or ever) calculated your net worth, the new year is a great time to do it! Understanding your net worth is an important step to assessing your financial health and reaching your goals. By looking at your assets and liabilities, it will provide a clear picture of how you spend your money and provide insight as to how you could better manage your spending and saving.
2. Set a Monthly Budget and Stick to ItA budget is a plan for how to spend your money. There are many tools to help you create a budget, but one straightforward way to go about it is:
- Write down your total income.
- List your expenses.
- Subtract expenses from income to equal zero.
- Track your spending.
3. Make a Plan to Pay Down Debts and Credit CardsTaking out a loan or using credit cards is a great way to afford things you need now. However, what many of us do not consider, is we are essentially just relying on future income to pay off those debts. Debt can decrease your future standard of living, by making you live on less. Access a debt or credit card payoff calculator to help determine what payments are feasible within your budget.
4. Revisit Your Goals PeriodicallyEvery few months, check in on your goals. This could serve as a nice reminder of what you hoped to achieve and can set you back on the right path to meet those goals. Or, if an unexpected life event (like perhaps a pandemic) changes your financial picture, update your goals, as necessary.
Stating your goals clearly and simply is a great way to get started! Whether you are looking to simply feel more stable, pay down debt, or grow your savings account, we hope these tips and tools help you reach your goals in 2021.