WalletHub just came out with their 10 financial resolutions they recommend in the new year, and thought some of them were pretty good. Particularly for those just starting out in their journeys.
Any of these strike your fancy?
#1. Repay 20% of your credit card debt
If you have none, and/or are a baller, go for 20% of your mortgage!
#2. Add one month’s pay to your emergency fund
(Especially if you plan to use them for destination weddings ;))
#3. Pay bills right after getting your paycheck
I know that experts recommend “paying yourself first”, but I’ve always liked knocking out my bills as fast as I could too. At first this was on paydays, and then later in life moved to *the day the bills actually hit my inbox* so they’d never build up and/or have me forget about them. Plus – I don’t know about you – but I get this weird joy of paying off bills no matter how big or small as if it was some sort of game :) Maybe it’s the “checking thing off the list” type thing, or perhaps being appreciative that I even CAN pay off my bills at any time!, but either way I much prefer it than dreading them, haha… Are you the same?
#4. Make a realistic budget & stick to it
Key word there being “realistic”. If you’re done with budgeting right now, try tracking your net worth instead. A lot less time intensive, but still shows you pretty bluntly how well or not you’re doing each month. Plus gives you a much broader picture of how all your finances come together!
#5. Use different credit cards for everyday purchases & debt
I’m not too sure about this one, especially if you don’t handle cards too well, but here’s the reasoning from WalletHub:
The Island Approach involves using different accounts to serve different financial needs, as if they are a chain of islands. The most basic example is using a rewards credit card for everyday purchases and a 0% APR card for balances that you’ll carry from month to month. Doing so enables you to get the best possible terms on each card, rather than settling for average terms on a single card. It will also help you reduce the cost of your debt, considering everyday purchases won’t be inflating your average daily balance
#6. Look for a better job
That’s not a bad one to focus on for a year! Even if you’re perfectly content with where you are it never hurts to keep your eyes open in case something better/more fulfilling comes along your way… And if you’re already loving your job, perhaps shoot for *advancing* there instead by the end of the year! That’s do-able in 12 months at most places, yeah?
#7. Sign up for credit monitoring
Not sure this is the most challenging goal to shoot for in an entire year, haha…, but yeah – monitoring it is always a good idea if you’re not already doing so. And at the very least you could just pull your credit *report* each year (for free) that everyone has access to through federal law: AnnualCreditReport.com
#8. Improve your credit score by 20 points
Now that’s a fun one! Which you could work simultaneously w/ the credit *monitoring* since you’d be able to see the changes month in and month out. Some tricks for this (depending on how much you trust yourself with credit!) is calling to get your limits raised as high as possible to improve your debt-to-credit ratio, as well as opening up new cards and then putting something on them every few months and right away paying them off to show how “responsible” you are. And sometimes just picking up the phone and *asking* to have your credit RATES lowered can work too! I was amazed when I first saw this in Ramit’s book, and then tried it out for myself and it worked :)
#9. Focus on your physical health
Not exactly a *financial* resolution, but of course it all ties together with stuff. If you’re wishing you’d be more active, I advise fostering a puppy for a week and seeing what that does! We’re 5 days into doing this ourselves and my daily walk ratio has already tripled!! Haha… Plus you get all that extra love and endorphins flowing through you which HAS to have a good effect on your well-being ;) All the way up to at least *parting* with your pup, which I’m very not looking forward too and hoping just maybe we can end up keeping her in the end?? PRETTY PLEASE HONEY??
UPDATE: We adopted her this weekend!! OMG!!!
#10. Get an A in Wallet Literacy
WalletHub of course has a quiz for this, so you can easily gauge your knowledge *now* in 2019, and then try again at the end of 2020 to see how much you’ve improved –> WalletLiteracy
I took it last in April and scored an A-. Some of the answers I got wrong were:
- Which type of car insurance coverage will pay for damage to your car from an accident that you cause?
- When someone bounces a check, who is usually charged a fee?
- Rank the following sources of funding for higher education from best to worst…
Try it out and see if you can beat me :)
Anyone have other good $$$ goals they’ll be shooting for in 2020? Anyone still working on theirs from 2019?! ;)
I have yet to select mine, but thinking it’ll continue along the lines of “living more” as it’s been one of the best things I’ve focused on lately… I talk a little more about it on a recent podcast I was on if interested: BiggerPockets Money Podcast 103: Budgets Really ARE Sexy! with J. Money
Jay loves talking about money, collecting coins, blasting hip-hop, and hanging out with his three beautiful boys. You can check out all of his online projects at jmoney.biz. Thanks for reading the blog!