I’ve always wondered why personal finance is not a class that is taught in school. I never really thought about managing my money, investing, and saving until I was at my first job and even then I realized that I knew practically nothing about personal finance. Although it’s not as popular as getting in shape, one in three Americans say they hope to improve their financial stability in the new year—and I am definitely one of them. But how can one keep their financial resolution? MarketWatch recently shared five crucial tips; I’ve outlined them below.
- Set positive and achievable financial goals. Spin your financial goals in a positive light rather than a negative light. Instead of saying, “spend less” say “save more.” Spending less will make you feel deprived and that in turn will make you want something that is out of your financial limit even more. Don’t make goals that are too lofty. Write down your goal and break it down into manageable parts.
- Make a specific plan with room for setbacks. If you want to save more, make a detailed plan. Write down the specific amount of money you want to save per week or month, create an outline of areas where you will cut back on spending, and come up with a plan to deal with setbacks.
- Automate as much as you can. Having a certain portion of your money automatically deducted from you paycheck and put into a retirement or savings is crucial. You won’t be able to spend the money if it’s not in your account. Keep your savings in a separate account at a different bank than your checking account.
- Get social support. If you’re in a relationship, tell your significant other about your financial resolutions. Let your friends know that you are cutting back on spending, so you aren’t tempted to go out and spend a ton of money on activities.
- Review goal progress regularly. Set up a calendar reminder monthly and check in with your finances. Remember the positive reasons why you made the goal and don’t beat yourself up if you’ve run into setbacks.
Keep your cash in a stylish wallet.
What are your financial resolutions for the new year?