There are numerous financial management tools and resources available to consumers throughout the year to help make the goal of improving finances an achievable undertaking, whether viewed as a new year’s resolution or a consistent, long-term objective. If you’ve resolved to improve your finances in 2020, consider these money management and resolution tips from U.S. News & World Report.
- Identify your financial goals – Whether you’re planning to buy a home, contribute more to your retirement savings or start an emergency fund, take the time to document your specific financial goals for the year and attach a timeline to each so you can feel accomplished with each milestone.
- Track your budget – Routinely track your monthly spending so you can see where your money is going and identify areas where you can cut frivolities and reallocate those funds to meet your goals.
- Check your credit report – Request a free credit report on com to understand your credit standing and ensure accuracy. Consumers are entitled to one free credit report each year from each of the three credit bureaus – Equifax, Experian and TransUnion.
- Commit to no-spend days – Designate one "no-spend weekend" or "no-spend day" per month. Make this a time when no money leaves your hands or accounts (i.e. eat at home, skip shopping sprees and engage in free entertainment).
- Boost retirement contributions – Commit to boosting your 401(k) contributions. At the least, contribute enough to your workplace plan to secure your employer's match, which is typically between 3% and 6%, if one is offered.
- Fast-track debt payoff goals –This could mean contributing an extra $50 per month to your debt bill or deploying the avalanche payoff strategy, which focuses on putting any extra payments toward the highest rate loan first.
- Automate good habits – Whether you want to save more for retirement or repay debt, automate those monthly debits with your payroll office or your credit union.
- Rebalance your investment portfolio – Market volatility, new money goals, financial hurdles and other unanticipated changes can impact how you should balance your investment portfolios. Keep an eye toward your long-term and short-term goals and make sure you're viewing the market with clear eyes – not a fear-based mentality.
- Call your credit card company – If your credit card account is in good standing, take this time to negotiate a credit limit increase with your card issuer so you can improve your credit score, or make the case for a lower annual percentage rate, or APR.
- Fund your health savings account – Savers in eligible high-deductible insurance plans should consider contributing to their HSA as this is a tax-savvy way to save for future medical expenses.
