As the new year approaches many people reflect back on the year that has just passed and things that they would like to change going forward. These New Year’s resolutions can surround any number of topics but today I have 5 new year’s resolution ideas to improve your personal finances.
Cut Out An Expense
New Year’s resolutions are sometimes targeted at giving something up. Some people might give up something they love like chocolate chip cookies to lose weight, but here we give up expenses. Following through on this suggestion will take some serious effort. The rewards, however, can be great. Things you could give up range from going to the movies, to eating out on weekdays, to any sort of subscription service.
Cutting certain expenses may have the added benefit of freeing up your time as well as your money if you chose to give up something like Netflix for example.
Make X More Dollars Than Last Year
Giving yourself a quantifiable income goal is a great New Year’s resolution. Whatever you pick should be an achievable stretch that keeps you moving even after you are done at work.
Once you set a goal, whether it is $1000 more or $10,000 more you will be forced to build a plan if you want any hope of achieving it. Let 2018 be the year of the hustle.
Pay Off A Piece of High Interest Debt
Whether you’ve gotten into credit card debt, have some serious student loans, or just have a less than ideal rate on your car loan the best thing you can do at this point is to get out of it.
Pick your worst piece of debt (highest interest rate) and make it your New Year’s resolution to pay it off. This may require a combination of finding ways to increase your income and cut your spending but it can be a very good resolution to hone in on.
Max Out A Retirement Account
If you’re looking for a real challenge then make your New Year’s resolution to max out one or both of your retirement accounts. While the $5,500 IRA maximum contribution may not seem too difficult to max out, the 2018 401(k) maximum annual contribution will be $18,500. Do you think you are up to the challenge of paying yourself first to the tune of $24,000?
Read More Books
You may have heard someone say that “the best investment you can make is the investment you make in yourself.” Make your New Year’s resolution one of investing in yourself by setting a reading goal. There are endless amounts of information and wisdom sitting on the pages of books that are all within our reach in the age of the internet. Set a quantifiable goal of 1 or 2 books per month to really jump start your independent education.
Need some ideas for books to start with? Check out 10 Business Books Everyone Should Read.
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