5 financial resolutions to make in the New Year

For many of us, the new year means a fresh start and the chance to set new goals. As you consider your resolutions, you may want to add “strengthen my financial foundation” to the list. Here are five ways you can put yourself on firmer financial footing in 2021:

Any time you receive a raise at work, consider adjusting the money you set aside for your retirement accounts by a comparable percentage. For example, if you invest $200 per paycheck into your workplace retirement plan, and then receive a three percent raise, consider increasing your retirement plan contribution to $206 (equal to three percent). Making your emergency fund. If you are short of that, make a priority of adding to it.

If you are paying a mortgage, car loan, student debt or credit card balances, consider more cost-effective ways to manage your debt. Finding ways to refinance debt at a lower interest rate is one consideration. Another is to focus on paying off the most expensive debt more quickly. Check your credit score to determine how it might impact your financing options. Gaining more control over debt is an important way to improve your financial standing over the next year.

Focus on fundamentals

Good intentions are in ample supply at this time of year. The key to making meaningful changes is to focus on the fundamental aspects of your financial life and follow through on the plans you make. Working with a financial advisor can help you be more accountable and provide guidance to help you stay on track.