5 easy financial resolutions to make for 2017
Okay so last years resolutions didn’t work out so well. But worry not, 2017 is going to be different. Why? Because we’ve laid out an easy-to-use guide of financial resolutions to make for 2017.
1. Pay Off Credit Card Debt
The first financial resolutions to make for 2017 should be to pay off your credit card debt. Carrying credit card debt is one of the costliest financial mistakes you can make. It will cost hundreds, if not thousands of dollars each year, so when considering what financial new year’s resolutions to make for 2017 – consider paying off your credit card debt first.
Pro Tip: Start by paying your highest interest debt first then work your way down.
2. Open An IRA
The early bird gets the worm. And the financial equivalent of that is – the sooner your start saving for retirement the more likely you will be able to reach your retirement goals. The new year is a great time to open an IRA. And the good news is that you have until April 15 2017 to fund your IRA for the financial year 2016.
Pro Tip: IRAs come with important tax consequences. In short you either save money on your taxes now or in retirement. If you want to learn more about the difference between traditional and ROTH IRAs you can do so here.
3. Improve Your Credit Score
Improving your credit score can take some time, It takes time, but it is definitely worth it. Your credit score will determine how much you interest you have to pay every time you borrow money – whether your buying a house, a car or opening a credit card.
Pro Tip: Use one of the free online tools to download your credit report and review it closely. If there are any incorrect items on the report, make sure to contact the credit bureaus with your back up materials to get them removed from the report. And if you have any collections on your record, get them paid as soon as possible.
4. Ask for a raise
The end of the year is a good time to ask for a raise, because this is when your company is finalizing their budgets for the coming year and if the year has been a good year for your company, then your chances of getting a raise is pretty good.
Pro Tip: Don’t just ask for a raise, consider put together a presentation or memo showing your accomplishments and what you plan to do for the company in the upcoming year.
5. Start saving money
Another important financial resolutions to make for 2017 is to start saving more. Saving more money is at the top of everyone’s financial to-do list, but it’s the perfect example something being easier said than done.
Pro Tip: Start by setting your savings goals. What are you saving for? Buying a home, a vacation, retirement? Once you’ve laid out your goals, then break up your savings plan into smaller pieces. How much do you have to save from each pay check to get to your goal? Also consider keeping your savings in a different bank than your regular checking account. Out of sight out of mind as they say.
