5 super easy financial resolutions
Each year starts with lofty goals, but resolutions are hard to keep. Rather than attempt a lifestyle change overnight, set small, attainable goals.
Here, SmartyPig offers five super easy resolutions anyone can use to put finances on track:
Know your credit score
Good credit is the foundation for achieving financial goals. It’s crucial to stay on top of your score. Services such as Equifax can tell you where you stand. If outstanding debt has lowered your score, start paying it down, prioritizing high-interest debt.
Define specific savings goals
General savings accounts are great, but experts say that saving is easier with specific goals because you visualize the prize rather than the process. Whether saving for a wedding, a vacation, a flat-screen TV or home improvements, check out SmartyPig (www.SmartyPig.com), a digital piggy bank for goal-based savers that makes it easy to set up several savings accounts and track progress. With a competitive interest rate (2.01%), cash boosts of up to 12%, and the option to invite friends and family to contribute to goals, you can end up with significantly more than you personally contributed.
Cut up credit cards
According to Experian, the average consumer carries 4.5 pieces of plastic — 4.5 potential paths into debt! By eliminating extra cards, you limit opportunities to spend money you don’t have. Start with cards that have high rates or punitive fees. Use scissors! Cancelling cards can impact your credit score, cutting them up makes them just as inaccessible.
Increase your 401K by 3%
You already know that you should contribute as much as possible to your 401K retirement savings plan – especially if your employer matches. An easy way to boost that savings is by increasing your contributions by a minimum of 3% each year. As your career progresses and your salary increases, it’s unlikely you’ll miss the money.
Make a date with your finances
Most of us are too busy to tackle anything but the most necessary financial assignments. Set aside time for crossing items off your financial To-Do list. Do what works for you whether it’s annual, quarterly or monthly appointments, though it helps to schedule this time when banks and other institutions are open. Time spent finding high-yield savings accounts, better insurance plans, and no-fee cards results in money in your pocket.
Source: SmartyPig