New Year’s Financial Resolutions

New Year's Financial Resolutions and Goals Image

As 2017 is quickly drawing to a close many people will set New Year’s Resolutions for themselves. These goals will cover a variety of areas such as personal health, hobbies, self-improvement, etc. One area that is sometimes neglected is financial health. A great idea is to set some New Year’s Financial Resolutions. These resolutions should be measurable, reasonably obtainable and sustainable. One of the first places to start is to review your current financial state to help establish a baseline to use in building the challenges. Once total income, expenditures, debt and savings have been determined either by year or month then it is time to establish the New Year’s Financial Resolutions. Some ideas for financial resolutions are:

  • For 2018 I resolve to find ways to increase my income by 10%.
  • For 2018 I resolve to reduce my debt by 20%.
  • For 2018 I resolve to increase my savings by 5%.
  • For 2018 I resolve to increase my charitable giving by 8%.

Resolutions without action plans backing them will probably end up meaningless. So establishing an action plan along with the resolution is a good idea. An example of an action plan for increasing income can be selling extra items from home during the first quarter of 2018 that are not being used anymore . An action plan to increase charitable giving may be dedicating 5% of the amount saved in debt service to charity by the fourth quarter of 2018. When it comes to finances there is not a “single plan fits all” because every situation is different. There are general financial principles though that affect long term prosperity. Like all New Year’s Resolutions two of the hardest things are to start and then continue them for the long term. It has been said that it takes 21 days to break a habit so with over 25 days until 2018 it is a perfect time to start and continue working toward achieving New Year’s Financial Resolutions.