SmartBanking Blog

Already Thinking About New Year’s Resolutions?

While many of us may have fallen short of fulfilling last year’s resolutions, the new year is an excellent time to recommit. Whether your resolution is to get more active, travel more, or spend more time with your family, your financial health can play a big part in fulfilling these goals. Perhaps your New Year’s resolution is improving your financial health. By following a few simple steps, you can be well on your way to making successful 2023 resolutions.

1. Fully understand your current financial health. It is recommended that consumers review their credit report at least once a year. You credit report will show if you are up to date on bills, if your debt-to-income ratio is balanced and if you are in good standing with loans. You may even decide to improve your credit score as one of your goals!
2. Create an up-to-date budget. Make sure to include all incoming and outgoing funds, as well as any other obligations that may be upcoming. Budgeting doesn’t have to be a chore! Grab some snacks and put on some music to focus.
3. Decide how best to reach your goals. This could be through taking out a loan, starting a savings account, cutting costs, or paying off debt. If you need help with how to best reach your goals, family and friends or professional financial planners are great tools for advice. Your bank can also provide you with some great resources or provide you with savings account interest rates or credit card rates and loan information.

Now that you have diagnosed your financial health, created a budget, and decided how best to reach your goals, it is time to make a plan. The key is to make sure this plan is achievable. Make sure to consider your budget and time constraints. It is always better to under-commit than to over-commit and risk discouragement completely derailing your goals. Some people find it helpful to keep a journal, others prefer spreadsheets—it all depends on what works best for you.

Now it is time to execute the plan. It is important to remember that setbacks will happen; an unexpected expense could pop up or you may need to add a commitment you didn’t have before. Do monthly check-ins and see where you are at. Ask yourself: Are you falling behind? Do you need to re-evaluate your plan? Are you ahead?

Even if you don’t reach your goal during the new year, don’t give up! Start the journey and see where it takes you. New Year’s resolutions should not induce anxiety or pressure but should be an opportunity to enrich your life and provide hope for the year ahead. From everyone here at The Savings Bank, we wish you a successful and happy 2023!