Written by If you’re like me, the word “resolution” has become almost taboo. The pressure of choosing one day of the year to make all the necessary changes to become a better person is enough to make you crazy. I don’t usually wake up January 1st with much energy to start going to the gym or eating better. I usually wake up to the realization that my bank account has gotten smaller and my waistline bigger after the holidays. I then sit down on the couch, greasy food in hand, and tell myself January 2nd is as good a day as any to become a new man.
All jokes aside, when it comes to finances, any day is a good day to start making better decisions, and the sooner the better. There are a few things I like to evaluate at the beginning of the year that help me become financially successful.
Come Up With a Plan
Think of this as creating a map to your ultimate goal, whether it’s paying off debt or saving more, without direction nothing is accomplished. Your plan can be broken down into steps or smaller goals to accomplish throughout the year. For example this year I would like to set aside $1K monthly toward my savings. This means that by the end of the year I should have an additional $12K in my savings account. This is a goal I can easily track on a monthly basis and adjust according to where I stand. The same goes for paying off debt, break the total amount down into smaller monthly goals. When you see a consistent pattern of success it becomes motivation.
Review and Consolidate
One of the best things you can do during the beginning of the year is to review all of your bank accounts, credit cards, insurances, and investments. This year I took the time to sit with a financial advisor to consolidate all of my old retirement accounts from previous employers. This allowed me to have my investment accounts easily available to view and manage. The same goes for bank accounts and credit cards, not only do banks charge fees but with so many different accounts, things can easily fall under the radar. Remember that Macy’s credit card you opened and then totally forgot to pay off, or was that just me? I like to work with two separate financial institutions. The first I use for my daily purchases and transactions along with a short-term savings account. The second I use for emergency savings that can’t be easily accessed.
Write it down
It’s not enough to say out loud what you would like to accomplish, write it down so you can hold your future self accountable. I have even seen some individuals post their goals on social media, so others can also hold them accountable. “I will be debt free by the end of the year,” posted to your Facebook or Twitter accounts will definitely get people’s attention.
It sounds so simple, doesn’t it? This is the start of a new chapter, one where you are financially responsible and conscious of your goals. When you look back next year around this time and see the progress made, the sacrifice and work will be worth the result. So, what is your New Year’s financial resolution? Leave me a comment below.
Michael D. Gould 