It’s a brand new year, and for many of us that means resolutions. It’s fairly common to set goals for the new year, and often financial goals are among the top items of interest when it comes to trying for self-improvement in the coming year. I’ll be setting a financial resolution for the new year, and I hope will, too.
What are the Most Popular Financial Resolutions?
According to the fifth annual New Year’s Financial Resolutions Study from Fidelity, 54 percent of consumers are considering a financial resolution. The top three resolutions amongst those who say they plan to improve their finances for the new year aren’t particularly surprising:
- Saving more (54 percent)
- Paying off debt (24 percent)
- Spending less (19 percent)
This is a fairly common setup for consumers. In fact, these are the same resolutions that people have had for the last three years. The only difference is that paying off debt has claimed the number two spot, switching with spending less, which used to be number two instead of number three.
These seem to be the basic resolutions that people make when they want to gain control of their finances and build a solid financial base. These are good resolutions that can make a big difference in your life if you are struggling. However, it’s important to realize that you can’t just make a general statement like that and expect to be successful in your efforts to reform your finances.
Instead, you need to be more specific. Instead of saying you want to save more, specify that you want to save an extra $100 a month. You can then look for ways to get that $100 a month, whether it’s making more money or spending less (it can tie into another goal). You need to be able to measure your progress so that you are encouraged to keep moving forward with your goal.
It’s also important to understand that this is more of a journey. Maybe you can’t save $100 more each month starting in January. Start small, by perhaps finding $20 that you can save for January. Then, once you have that $20 as part of your savings, you can add another $20, looking to bring your total of new savings up to $40. Break it down, and make it a gradual effort, and by the end of the year you will have reached your goal — and this is a state of affairs that can continue into the years to come without too much effort.
My Financial Resolution for the Coming Year
This year, my financial resolution is to really get things going on my dividend portfolio. In order to encourage me to focus on building my dividend portfolio, I’m joining an investing challenge with 14 other bloggers. This will encourage me to be accountable for my goal, and keep me motivated to do what I can to whip my income portfolio into shape. I’ve wanted to do it for a long time, but haven’t made it a priority. Now, though, for the new year, I’m putting it first in my finances, and I hope to see good results.
What’s your financial resolution for this year?
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