THE ULTIMATE LIST OF NEW YEAR’S FINANCIAL RESOLUTIONS TO MAKE 2020 YOUR BEST YEAR
Do you make new year’s resolutions each year? And do you include some financial resolutions? If you are looking for some inspiration for setting your new year’s financial resolutions, here you go.
Making Financial Resolutions in the New Year
The beginning of the year offers a fresh start on a clean slate. The allure of starting off with renewed vigor and zeal makes us excited.
We are keen to make the upcoming year better than the previous one. We want to improve, do better.
Most importantly, we focus on things that are important for us. This is why we make new year’s resolutions and set goals for ourselves.
On the money front too.
We want to improve our finances. We want to save more. Repay our debt. We want a money makeover.
This year let us take what we have learned in 2019 and move forward to making a new start in 2020. Let the coming year be the year when we work with a mission – be it to pay down our debt, to earn more money, to improve our lifestyle, to achieve a financial goal or simply to feel empowered by our finances.
Sticking With Your New Year’s Financial Resolutions
Let us set financial resolutions for the new year to get our financial life in shape.
But no matter what our new year’s financial resolutions are, the key is to stick to them.
So, how do you stick with your financial new year’s resolutions?
Many people will make financial resolutions for 2020. Probably you will too. But irrespective of what your resolutions are, unless you have a plan for how to implement them, you might not be able to stick with them.
Don’t just make resolutions. Also, make an action plan on how you are going to achieve them.
Resolutions give you a direction in which you want to progress. But you also need to take steps. You need an action plan.
And you need goals to keep yourself accountable.
So, if I have one financial tip for the new year it is this:
In order for your resolutions to be successful be sure to also make an action plan as well as set out long-term and short term financial goals to monitor your new year resolutions.
What should be your financial goals? Let’s see.
For example, if one of your new year’s financial resolutions is to increase your savings, your long-term goal may be to save $100,000 in 5 years and your short term goal may be to save $20,000 in 2020.
The steps you will take to save $20,000 is your action plan.
Here is an extensive list of financial resolutions for 2020 to help you get started. Pick a few from these or use them as inspiration to come up with your own. The resolutions you choose should work for you, your financial situation, and the direction you want to go in.
If you are thinking about how to improve your finances, start by making a few resolutions.
But make sure you have goals and an action plan to make each financial new year resolution a success.
So, let’s start finding the resolutions for us.
Budgeting Financial Resolution
1. Track spending. Be more aware of where your money goes.
2. Create a budget.
3. Find a budgeting method that works for you.
4. Stick to your budget.
5. Find areas to reduce spending in a couple of your budget categories.
6. Calculate your net worth regularly.
7. Plan and save up to buy big-ticket items.
8. Catch up on bills you are behind.
9. Pay bills on time.
10. Set-up auto-pay on your bills.
11. Stop paying late fees.
Paying Off Debt Resolutions
12. Develop a viable debt repayment plan and stick to it.
13. Start tracking your debt repayment using a visual tracker to motivate you.
14. Pay beyond the minimum amounts due each month to repay your debt.
15. Increase your mortgage payments so you can pay off your house loan faster.
16. Go in for debt consolidation or refinancing.
17. Find a credit card with a lower APR and transfer the outstanding balance to it.
18. Avoid taking on more debt.
19. Pay off your highest cost debt
20. Pay off medical bills.
21. Pay off the IRS.
22. Round up on loans
23. Become debt-free.
Make More Money Financial Resolutions
25. Take on a side hustle.
26. Ask your boss for a raise.
27. Support your spouse by earning more.
28. Get a job.
29. Get a new job.
30. Sell unused stuff lying around the home.
31. Learn or upgrade your skills.
32. Convert your hobby into a business.
Save More Money Financial Resolutions
33. Save for a big-ticket item – say a trip to Disney or a new roof.
34. Start saving for Christmas in January.
35. Save for your children’s college.
36. Save for a home.
37. Learn how to use sinking funds.
38. Do a savings challenge.
39. Do a no-spend challenge.
40. Go under-budget in one category each month. Add that to savings.
Frugal Living Resolutions
41. Stop eating out.
42. Reduce grocery budget.
43. Use items in the pantry.
44. Start meal planning.
45. Drink water instead of soda.
46. Drink coffee at home instead of Starbucks.
47. Cancel unused memberships.
48. Go for a run instead of working out at the gym.
49. Cut off the cable.
50. Go for a cheaper mobile plan.
51. Quit smoking.
52. Carry lunch to work.
53. Look for free fun activities to do.
54. Start a carpool.
55. Use more public transport.
56. Ride your bike to places in summer.
57. Check what is in season and buy that.
58. Plan ahead and stock up things you need when they are cheaper.
59. Save on electricity bills.
60. Save on heating bill.
61. Shop around for insurance.
62. Shop around for everything.
63. Search for coupon codes.
64. DIY your Christmas gifts instead of buying them.
Retirement Planning Related Financial New Year’s Resolutions
65. Learn about your company’s retirement benefits (401(k), company match, pension)
66. Learn about other types of retirement savings accounts.
67. Find out how much you need to save for retirement.
68. Calculate the age at which you will be able to retire.
69. If retired, find out how long your retirement savings will last.
70. Open an IRA.
71. Start or increase contribution to your retirement accounts.
Investment and Portfolio Optimization Financial Resolutions
72. Invest portfolio in asset classes according to your stage of life and risk-taking ability.
73. Make sure your portfolio is aligned with the investment time-frame.
74. Diversify across and within asset classes.
75. Consider tax-efficiency while deciding asset class.
76. Monitor and re-balance your portfolio as needed.
77. Maximize employee match on your 401(k).
78. Learn about Roth IRA accounts.
Preparing For The Unexpected
79. Start/add to your emergency fund.
80. Protect against large medical expenses with health insurance.
81. Have adequate life insurance.
82. Set up or review insurance for your car, home, rental, and other assets.
83. Review your existing insurance policies.
Protect Your Estate
84. Prepare a will.
85. Update your will regularly.
86. Review and update beneficiaries in your insurance policies, retirement, and other accounts.
87. Have a power of attorney in place for your health care to make decisions.
88. Keep important estate documents safely.
Organize Your Finances Resolutions
89. Get your credit reports from different credit bureaus.
90. Check if your information is correct.
91. Take steps to improve your credit score.
92. Organize your financial documents.
93. Make a list of your accounts, credit cards, and debit cards.
94. Close accounts not being used.
Financial Education Resolutions
95. Read more about personal finance – books, blogs, articles.
96. Listen to a personal finance podcast each week.
97. Teach your children about personal finance.
98. Ask for advice.
99. Think of money mistakes you made this year and how to avoid them in 2020.
100. Donate to your church or a cause you believe in.
101. Volunteer your time.
Thanks for reading!
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