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5 Easily Maintainable Financial Resolutions for the New Year

Are you among the many people who set resolutions for the New Year? Are financial resolutions among those you decided to set? These seem to be among the most popular. If you decided this is the year frugality will prevail, here are some simple ways to start. The easier you make the changes, the more likely it is that you will implement them.

1. آ Set Up Automatic Transfers

Do you put saving money on the back burner? Maybe you think getting out of debt first is important. It is, but you also need to have money saved. The easiest way to do this is to set up automatic savings. This lets you put money aside before you ever see it. The ق€œout of sight out of mindق€ process works here. Even if you put aside just $20 per paycheck, it adds up throughout the year. Before you know it, you have a nice nest egg to help you out in the future.

2. آ Stick to a Cash Budget

If you got caught up in the hype of using credit or debit cards for every purchase, you probably donق€™t realize what you spend. Start using a cash budget this year instead. This forces you to create a budget and stick to it. You can start small, such as with a cash grocery budget or cash entertainment budget if the process seems too overwhelming. When you use cash, you donق€™t have the liberty to spend whatever you feel like spending. It puts thought back into your purchases and cash back in your pocket.

3. آ Cut Out Excessive Spending

You might have a Starbucks addiction, but you probably love your cash more. Start tracking how much miscellaneous money you spend throughout the month without realizing it. Starbucks runs, manicures, drinks with friends are all expenses you probably donق€™t consider when you budget. If you notice a running pattern that interferes with your savings or even paying your bills, start cutting down on one or more habits. Donق€™t do anything drastic, though. If you have a Starbucks habit, start out by cutting one cup a week out. This way you are more likely to stick to the plan and eventually work your way up to more savings.

4. آ Automate Your Payments

How many late payment fees did you pay this year? If you arenق€™t sure, go back through your accounts. These fees add up, especially since credit cards can hit you up as much as $50 per transaction. Rather than letting those fees eat your finances again, set up automatic payments. This way you know you will pay your bills on time. After a few months, you will likely notice a little extra cash in your account.

5. آ Focus on One Debt

If you have numerous debts, try focusing on one debt at a time this year. Make larger payments to this account as much as you can while making minimum payments on other debts. This way you pay your one debt down faster. Once you pay that particular credit card or loan off, you can move onto another debt. This way you see progress and feel continually driven to stick to your debt repayment plan.

These simple changes do not require drastic measures on your part. This enables you to stick to the plan and ensure that you stick to your resolutions this year. The smaller you start, the easier the changes are to implement. Even saving $50 a month to start will eventually build up to larger savings, enabling you to become financially responsible and free in the near future.