{"id":5332,"date":"2022-12-27T07:00:00","date_gmt":"2022-12-27T15:00:00","guid":{"rendered":"https:\/\/www.quicken.com\/blog\/?p=5332"},"modified":"2024-11-18T10:20:26","modified_gmt":"2024-11-18T18:20:26","slug":"7-personal-finance-resolutions-for-the-new-year","status":"publish","type":"post","link":"https:\/\/www.quicken.com\/blog\/7-personal-finance-resolutions-for-the-new-year\/","title":{"rendered":"7 Personal Finance Resolutions for the New Year"},"content":{"rendered":"\n

\u2014 And How to Keep Them<\/strong><\/h2>\n\n\n\n

Another holiday season has come and gone and we find ourselves ringing in 2023 \u2014 time to turn over a new leaf, right? If you\u2019re thinking about sharpening your resolve and committing to something new, be prepared \u2014 New Year\u2019s resolutions can be hard to keep<\/a>.\u00a0<\/p>\n\n\n\n

But this year? Well, this year is going to be different. You\u2019re going to reach for the stars and stick to your resolutions \u2014 whatever they may be. If you want to take control of your finances with this year\u2019s resolution, we\u2019re here to help.<\/p>\n\n\n\n

This article offers 7 pre-made ideas for financial New Year\u2019s resolutions \u2014 complete with easy tips to help you keep them.<\/p>\n\n\n\n

General tips for sticking to your resolutions<\/strong><\/h2>\n\n\n\n

Yes, New Year\u2019s resolutions can be tough to stick with. All too often, people try to change too much too fast, only to find themselves off track come February. <\/p>\n\n\n\n

If you want to stick to your financial goals for the long term, try these four steps:<\/p>\n\n\n\n

1. Be specific with your goal. <\/strong><\/p>\n\n\n\n

When defining and setting your goal, make sure you\u2019re very specific about what it is exactly<\/em>. Resolving to get rich in 2023 is way too vague \u2014 make it as detailed as possible. <\/p>\n\n\n\n

2. Make it measurable.<\/strong><\/p>\n\n\n\n

The benchmark of progress is a goal\u2019s measurability. Frame your resolution in a lens that lets you easily determine if you\u2019re staying on track. <\/p>\n\n\n\n

3. Plan reasonably.<\/strong><\/p>\n\n\n\n

Ambition is great \u2014 we\u2019re here to support you, and enthusiasm goes a long way. But if you\u2019re $50,000 in debt and plan to be included in the Bloomberg Billionaires Index<\/em> by the end of the calendar year, we encourage you to re-evaluate your goals and be realistic about what\u2019s doable.<\/p>\n\n\n\n

4. Set up your environment.<\/strong><\/p>\n\n\n\n

If success is a lightning bolt, be like Benjamin Franklin and fly your kite in a thunderstorm. By positioning yourself in the correct environment, you\u2019ll have an easier time sticking to your goals and finding success. We\u2019ll look at this in a situational context later on. <\/p>\n\n\n\n

Seven <\/strong>personal finance<\/strong> resolutions for 2023 \u2014 and how to keep them<\/strong><\/h2>\n\n\n\n

Resolution 1: I will review my monthly spending<\/strong><\/h3>\n\n\n\n

Do you loathe opening your banking app after a fun weekend, or just a few days prior to payday? You\u2019re not alone. You can break this cycle and make your bank account a safe space by reviewing your spending every month, mitigating any surprises, and alleviating the stress and anxiety that come with financial uncertainty.<\/p>\n\n\n\n

Start with these steps:<\/p>\n\n\n\n

Be specific<\/strong> \u2014 Formulate a plan. Will you look at your bank statements on the last day of each month? Do you want to track your spending in an app<\/a>? It\u2019s up to you how to do it, but find a way to make sure you\u2019re reviewing your monthly spending \u2014 so you can see where you may be overspending, find recurring charges you might not be using, and more. <\/p>\n\n\n\n

Make it measurable<\/strong> \u2014 It\u2019s important to keep some semblance of consistency when reviewing your monthly spending. Try picking a day each month on your calendar and checking it off when you\u2019ve finished. <\/p>\n\n\n\n

Plan reasonably <\/strong>\u2014 If you\u2019re new to this, don\u2019t expect to become Warren Buffett overnight. Remember, this process is about familiarizing yourself with your own spending habits, seeing what\u2019s working for you, and changing what\u2019s not.<\/p>\n\n\n\n

Set up your environment<\/strong> \u2014 You\u2019ll need to make it easy on yourself to check your finances \u2014 if it\u2019s inconvenient (or a downright pain in the neck), you\u2019re not going to do it. Make sure your banking or finance app is installed and current, and consider setting up a shortcut on your home screen. Face ID security is very helpful, too!<\/p>\n\n\n\n

Resolution 2: I will pay down my <\/strong>credit card balance<\/strong><\/h3>\n\n\n\n

Carrying credit card debt isn\u2019t much fun at all. It impacts your credit score, decreases your spending power, and if your accounts have high annual percentage interest rates (APR), you can pay credit card companies a fortune in interest. <\/p>\n\n\n\n

The good news? Paying down your credit card debt is a doable feat. Here\u2019s how:<\/p>\n\n\n\n

Be specific<\/strong> \u2014 You\u2019ll need to aggregate all of your accounts, along with their total outstanding balances, their monthly payments, and the attached APR% to find out how much you owe. There are several different avenues to pay down credit card debt<\/a> \u2014 find one that works for you.\u00a0<\/p>\n\n\n\n

Make it measurable<\/strong> \u2014 This one is pretty clear cut \u2014 you can watch your balances drop in real time as long as you continue to make payments. Do your best to avoid charging anything to your credit cards while you\u2019re working to pay down your balances. <\/p>\n\n\n\n

Plan reasonably <\/strong>\u2014 The goal here is to chip away at your debt. You do not <\/em>want to spend so much money paying off your accounts that you don\u2019t have enough left for your living expenses. A good rule of thumb is to set up a budget and pay 10% of your monthly income<\/a> toward debt.\u00a0<\/p>\n\n\n\n

Set up your environment<\/strong> \u2014 Make it easy to pay off your cards by setting up automatic payments. This is especially important to keep making minimum payments on multiple accounts. Also, link your checking account to ensure you always have enough to cover your payments, and set reminders<\/a> for larger payments. <\/p>\n\n\n\n

Resolution 3: I will improve my <\/strong>credit score<\/strong><\/h3>\n\n\n\n

While you\u2019re paying off your credit card debt, it stands to reason that your credit score will (slowly) improve. If your credit reports have historically been less-than-stellar, there\u2019s never a better time than now to double down on your financial resolutions and try to raise your credit score.<\/p>\n\n\n\n

Whether you\u2019re trying to afford a new car or a house within the next year or two, these steps will help you raise that score:<\/p>\n\n\n\n

Be specific<\/strong> \u2014 Evaluate your open lines of credit and formulate a plan<\/a>. Aside from paying down revolving debt (credit cards, in particular), you\u2019ll want to ensure you continue to pay on time (35% of your score), keep balances low (30%), keep your credit cards open (15%), and avoid applying for new lines of credit (10%).\u00a0<\/p>\n\n\n\n

Make it measurable<\/strong> \u2014 Here\u2019s another instance where this resolution is fairly easy to measure \u2014 we\u2019re literally keeping score! Periodically check in on your score through free sites like Experian<\/a>.  <\/p>\n\n\n\n

Plan reasonably <\/strong>\u2014 Even if you\u2019re doing your very best and remaining diligent, make sure you manage your expectations and don\u2019t expect miracles. Credit scores fall much more quickly than they rise \u2014 just stick to the plan and you\u2019ll see your efforts pay off over time. <\/p>\n\n\n\n

Set up your environment<\/strong> \u2014 Again, this is just setting yourself up for success. Automate your payments, keep your accounts open (even after you pay the entire balance), and try not to use your credit cards excessively. Also, consider a Credit Lock from Experian \u2014 it will prevent lenders from running your credit and affecting your score. <\/p>\n\n\n\n

Resolution 4: I will build up an <\/strong>emergency fund<\/strong><\/h3>\n\n\n\n

The true blue emergency fund includes enough money to cover 3\u20136 months worth of living expenses \u2014 rent, loan payments, groceries, etc. If you\u2019re starting from scratch, saving for half a year\u2019s expenses might seem downright impossible. Instead, start slow and just stash away whatever you can.<\/p>\n\n\n\n

The hardest part about saving can be just leaving the money in your bank account \u2014 here are a few steps to help you leave it be and watch it grow:<\/p>\n\n\n\n

Be specific<\/strong> \u2014 Start by deciding how much you want to save. If you want to have a few thousand on hand for any unexpected short-term surprises like an air conditioner repair or a skateboarding-related collarbone injury, plan for that. If you want to save money for 6 months of living expenses, again \u2014 plan for it.<\/p>\n\n\n\n

Make it measurable<\/strong> \u2014 Once you create your goal, you\u2019ll want to track it and watch your balance grow over time. You can measure your progress by determining what the balance in your savings account is versus where your goal expects you to be. <\/p>\n\n\n\n

Plan reasonably<\/strong> \u2014 Unless you hit the lottery, you\u2019re not going to hit your long-term goals overnight. Budget just how much you can afford to put away every month, and do your best to leave it alone. By staying disciplined and not touching the money you\u2019re stashing away, you\u2019ll reach your goal sooner.<\/p>\n\n\n\n

Set up your environment<\/strong> \u2014 If you receive direct deposit paychecks, consider setting up an automatic savings function to stash away money as soon as it hits your account. Also, you can create an additional savings account to create some separation and inaccessibility! If you have a finance app like Simplifi, set savings goals<\/a> to stay on track.<\/p>\n\n\n\n

Resolution 5: I will save up for a house<\/strong><\/h3>\n\n\n\n

Buying a home will be the largest purchase many people will make in their entire financial life! If you\u2019re thinking about being a homeowner \u2014 whether someday or someday doon\u2014 you can resolve to start saving this year. It\u2019ll put you that much closer to closing on your dream home.<\/p>\n\n\n\n

If you want to prepare to put down a downpayment, start here:<\/p>\n\n\n\n

Be specific<\/strong> \u2014 The difference between the down payment on a $300,000 home and a $500,000 is substantial, so start by deciding just how much you can spend on a home<\/a>. You\u2019ll need to know what you can afford, how much you can budget, and make sure you\u2019ll be able to make monthly mortgage payments.\u00a0<\/p>\n\n\n\n

Make it measurable<\/strong> \u2014 Like your emergency fund savings resolution, you\u2019ll want to make sure your home savings resolution is quantifiable. Create an additional savings goal and budget category for the money you\u2019ll be stashing away \u2014 an actual dollar amount \u2014 and make sure your savings account reflects the goal. <\/p>\n\n\n\n

Plan reasonably<\/strong> \u2014 Unless you\u2019re counting the players on the pitch for the France and Argentina World Cup Final, very few people can afford to buy a house outright. It\u2019s a huge<\/em> expense. Manage your expectations, keep your budgeting goals on track, and remain optimistic. <\/p>\n\n\n\n

Set up your environment<\/strong> \u2014 Similar to your emergency savings resolution, you\u2019ll want to create shortcuts to save. Automated savings, savings goal trackers<\/a>, additional high-yield savings accounts, and finance apps<\/a> are your friends in this instance. Stick to it and watch your down payment grow!<\/p>\n\n\n\n

Resolution 6: I will add a new income stream<\/strong><\/h3>\n\n\n\n

It\u2019s 2023 and the gig economy is thriving. If you want to burn your Dockers and Banana Republic blazer once and for all and start driving an Uber full-time, you can! If you want to pad your income and work a few extra hours a week, that\u2019s totally doable, as well. <\/p>\n\n\n\n

Ready to earn more and boost your net worth? Get started with these four steps:<\/p>\n\n\n\n

Be specific<\/strong> \u2014 You need to decide what you\u2019re going to do, so play to your skillset. Are you a painter? Commission murals around town. A writer? Upwork has plenty of contract work. Amateur go-kart racer? Uber and Lyft have plenty of users in need of a ride. (Please obey all traffic regulations.)<\/p>\n\n\n\n

Make it measurable<\/strong> \u2014 The more you work, the more you make \u2014 right? You can measure your income by tracking your side gig earnings and watching them side-by-side against your expenses to understand your profits. <\/p>\n\n\n\n

Plan reasonably<\/strong>  \u2014 Ambition, again, can be a blessing or a curse. If you\u2019re too burned out from driving Uber at 4am to make it through your 1pm call with a client, you\u2019re doing too much! You need to make sure your side gig is sustainable and fits into your life. <\/p>\n\n\n\n

Set up your environment<\/strong> \u2014 Your environment in this case is a bit more abstract than our previous resolutions \u2014 the goal is to make sure you\u2019re in a place where you\u2019re feeling energized and able to work. This means not only taking care of your tools (your car for ridesharing, your computer for graphic design gigs, etc.), but also taking care of yourself. Eat right, exercise, get enough sleep, and be mindful of your stress levels. <\/p>\n\n\n\n

Resolution 7: I will start thinking about retirement<\/strong><\/h3>\n\n\n\n

Life moves fast! Time always seems to have a way of getting away from us before we even realize \u2014 the future approaches with each passing minute and we get closer and closer to retiring. So, why the introspection about time? Because if you fail to save for retirement, you can find yourself at 70 years old without the ability to stop working. <\/p>\n\n\n\n

Not sure where to start your retirement savings? We\u2019ve got your back:<\/p>\n\n\n\n

Be specific<\/strong> \u2014 You\u2019ll need to start by setting your goals for your retirement savings \u2014 our retirement calculator<\/a> is a great start. Most Social Security benefits won\u2019t kick in until you\u2019re nearly 70 years old, so you\u2019ll need to make sure you have something to subsist on. Talk to HR to figure out your 401(k) or pension plan, as well.\u00a0<\/p>\n\n\n\n

Make it measurable<\/strong> \u2014 This is more of a long-term method, but you\u2019ll want to track your retirement account(s) and check in on them regularly to watch them grow, monitor their progress, and eventually add more to your 401(k), IRA, or pension plan.<\/p>\n\n\n\n

Plan reasonably<\/strong> \u2014 It\u2019s really important, again, to make sure your plan is sustainable \u2014 don\u2019t max out your contribution and live on a shoe-string budget that brings unnecessary stress. If needed, you can try a few ways to make more money<\/a> to add to your retirement fund.\u00a0<\/p>\n\n\n\n

Set up your environment<\/strong> \u2014 Facilitate your investment by setting up automatic contributions from your salary \u2014 many employers will even match your 401(k) contributions! You can track your retirement and investment accounts together in our apps, Quicken<\/a> and Simplifi<\/a>.\u00a0<\/p>\n\n\n\n

I will stick to my <\/strong>financial resolutions<\/strong><\/h2>\n\n\n\n

Simply put, sticking to a New Year\u2019s resolution is hard work \u2014 there aren\u2019t any shortcuts, only ways to ensure your own accountability. Whether you want to lose weight, learn a new language, go bungee jumping, or take control of your finances, you are ultimately responsible for your success.<\/p>\n\n\n\n

When it comes to finances, the process is deeply personal \u2014 the right goal for you depends on your specific financial situation. There\u2019s no one-size-fits-all solution. But with the steps above, you can commit your financial plan to habit, pay off your debts, increase your savings, and prepare for a financially-responsible future.<\/p>\n","protected":false},"excerpt":{"rendered":"

Thinking about your 2023 New Year\u2019s resolutions? Reach for the stars with these 7 personal finance goals \u2014 plus tips on how to stick to them.<\/p>\n","protected":false},"author":59,"featured_media":5335,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_robots_primary_cat":"69","_seopress_titles_title":"7 Personal Finance Resolutions for the New Year | Quicken","_seopress_titles_desc":"Thinking about your 2023 New Year\u2019s resolutions? Reach for the stars with these 7 personal finance goals \u2014 plus tips on how to stick to them.","_seopress_robots_index":"","inline_featured_image":false,"footnotes":""},"categories":[69],"tags":[],"class_list":["post-5332","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-personal-finance"],"acf":[],"jetpack_featured_media_url":"https:\/\/www.quicken.com\/blog\/wp-content\/uploads\/2022\/12\/2023-printed-on-paved-road-with-the-back-of-a-sprinters-shoes.jpg","_links":{"self":[{"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/posts\/5332","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/comments?post=5332"}],"version-history":[{"count":5,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/posts\/5332\/revisions"}],"predecessor-version":[{"id":5340,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/posts\/5332\/revisions\/5340"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/media\/5335"}],"wp:attachment":[{"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/media?parent=5332"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/categories?post=5332"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/tags?post=5332"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}