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Five Financial New Year’s Resolutions You Can Keep

financial planningThe dawning of a new year is a great time to reflect on past accomplishments and evaluate priorities and goals. Many New Year’s resolutions are related to money. According to USA.gov several of the top resolutions are directly related to finances. And several others, such as reduce stress and travel more, also pertain to finances. If just the mention of a budget or retirement savings triggers feelings of anxiety and helplessness, you are not alone. You also need to know that you are not helpless. There are a few basic things you can do to organize and keep control of you money throughout the new year.

Cut Out The Wants
Start small. Little extravagances such as a coffee house latte and muffin for breakfast each day can add up to more than one thousand dollars over the course of a year. Consider which will give you the greatest feeling of satisfaction: paying an additional one hundred dollars toward paying off your debt each month or the temporary rush you get from that sugar and caffeine.

Cut Bills
Reduce recurring monthly bills. Review your monthly billing TV and phone statements. You may find some charges that you don’t recall agreeing to. Call your service provider and ask what can be done to have them removed. Just the mention of switching to another provider will often result in them reducing your monthly bill just to keep you as a customer. Research other TV channel packages and cell phone plans. You may find a less expensive plan that is more in line with your actual usage.

Get Planning
Actively plan for your retirement. The vast majority of people do not adequately plan for their later years. Maintaining good health and positioning yourself in a career that you are able to continue as you get older are just as important as saving money. Health care cost and outliving savings blindside many people when they get older and result in them feeling helpless and at the mercy of others. Your golden years do not have to be that way.

Reduce Debt
Eliminate credit card debt. Most people have their plans for financial freedom held hostage by uncontrollable credit card interest rates and balances that never get paid down. Money spent on credit card interest is wasted and should be spent on things that enhance the quality of your life. You can find options for debt consolidation and credit counseling at National Debt Relief. Make sure that you do not charge more on a credit card each month than you are going to be able to pay off by the end of that month.

Keep a Rainy Day Fund

Have an emergency fund. There are many situations that can derail your finances and have you vulnerable to foreclosure, bankruptcy, or eviction from your apartment. Unexpected auto or home repairs, sudden job loss or family emergencies never occur at a convenient time. Saving enough to have living expenses that will sustain you for six months is sufficient and doable.

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