Setting Realistic Financial Resolutions for the New Year

January 6, 2020

2020 is here and among the top resolutions most people make for the new year, in addition to health and fitness-related goals, 43% make financial resolutions. However, after the first 30 days of a new year, over 25% of people give up on their resolutions!

Getting your finances into focus is Financial Partners’ primary goal for members in 2020 and we’re starting off by sharing our tips to set and maintain financial resolutions. 

 

What are the most common financial resolutions?

Increasing savings and eliminating debt are the most common financial resolutions – both of which can be realistic and feasible with the right plan. Most often, people will set unreasonable or overly aggressive goals which ends up doing more harm than good. 

So, rather than setting a goal of eliminating all credit card debt in three months, for example, a more achievable expectation would be to aim to eliminate 10 - 15% of credit card debt per quarter. Then, if goals are exceeded, it’s motivational vs deflating.

 

How can you easily spend less and save more in 2020?

A great first place to start is to review your spending, specifically credit card charges, if your financial resolutions are to spend less or save more. 

Many of us have recurring charges and little fees that add up – mainly because we aren’t carefully looking at spending. Or, for example, let’s say you have a daily Starbucks habit. $3 a day, every day is over $1000 per year. Simply changing up your routine to having a cup of coffee at home or at the office can eliminate a significant chunk of debt.


As always, our Financial Advisors are here to help our members get financially focused. Schedule an appointment today by calling 800.TRY.FPCU.