New Money Habits to Create in the New Year
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Like most things we do, the way we spend our money usually comes from habit. Think about everything you do on a daily basis, from brushing your teeth to exercising; consistent practice helps us stay on track. The same is true for your finances. To have better control over your money, you need to create and practice healthy financial habits.
If you are up to your eyeballs in holiday debt or just looking to save more money, the new year is a great time to start implementing the habits below!
1. Schedule an annual “financial health” day.
Just like you schedule a yearly physical, take a day off work each year to review your finances. Schedule financial appointments, review long-term financial plans (i.e., retirement savings) and meet with a financial advisor. Make this day a personal and annual financial holiday. Following this routine will help set you up for success for years to come.
2. Build an emergency fund.
Starting an emergency fund is half the battle. Once you open the account, aim to save three to six months of living expenses. If you can, set up automatic transfers to a dedicated savings account that can only be used in case of an emergency.
3. Set realistic financial goals.
If you have $30,000 in debt and make $40,000 a year, having a goal to pay off your debt in one year is probably not realistic. But you can establish a goal to consolidate your debt. You can use one of our low-interest credit cards to avoid paying additional interest on your debt or take advantage of a Members 1st Visa Credit Card Balance Transfer – both are great ways to get started.
4. Review, review, review.
- Start with your credit report. Check your report for errors using the free annual service via annualcreditreport.com. Make sure everything is reporting correctly and see what ways you can improve your score. Try to focus on habits that will help you reach your goal, score!
- If you do find an error, write a dispute letter to both the credit reporting agency you are viewing and the company that provided the incorrect information along with all supporting documents.
- Review your retirement plan. Speak with your 401(k) representative to review your retirement portfolio and aim to increase your contributions to your 401(k) or Individual Retirement Account (IRA).
- Review your subscription costs. Make a list of all your subscriptions and cancel the ones you don’t really use.
5. Automate your savings.
Set up automatic transfers to your savings or investment accounts each payday and treat savings like a bill that you must pay.
6. Build an accountability system.
Share your financial goals with a trusted friend, partner or family member and have regular check-ins to share your progress and challenges.
Creating new money habits can be overwhelming, but you are not alone. You can always contact one of our associates or come in and visit them in-person at any of our almost 60 branch locations. Our associates would be happy to help you take control of your finances this year and beyond!
