New Year’s is a time of transformation. And this New Year, you’re hoping to transform your personal finances. Here are three resolutions that can help you make that happen:
Build an Emergency Fund
Are you living without an emergency fund? You’re not the only one. According to the Federal Reserve, almost 40% of Americans couldn’t cover a $400 emergency using either cash, their savings or even their credit card and then be able to pay it off easily. When you think of unplanned trips to the auto mechanic or calls to a plumber, the final bill can easily cost $400 or more.
That’s why one of your New Year’s resolutions should be to build an emergency fund so that you can avoid this tricky situation. See how much you can pull from your monthly budget and put into a savings account. Repeat this step every month.
While you’re building up your fund, you should still have a safety net in place. Your fund won’t have enough to cover emergency costs for a while. One solution is to apply for a personal line of credit online. If you’re approved, you can withdraw an amount below your limit from the line of credit and have it sent to your bank account. It’s quick, simple and convenient. Click here to see what the personal line of credit requirements and terms for this loan are to see if you’re eligible to apply for one this year.
Declutter Your Bank Account
One of the things that people like to do in the New Year is clean out their closets and dressers so that they can throw out all of the things that they don’t want anymore. You can use home decluttering principles with your finances so that you stop holding onto any accounts that you don’t need anymore.
Look through your bank statements to see if you can find subscriptions and memberships that you’ve completely forgotten about. Cancel the ones that you don’t want to keep. See if the ones that you do want to keep have raised their prices in the past year. The change in price could motivate you to switch providers or contact them for a better deal.
Cook More Often
This might not feel like a financial resolution, but cooking from home can dramatically affect your bank account. Your habit of ordering out is expensive. It’s okay to get takeout occasionally, but every day?
Make a note of how many times you bought food (other than groceries) in the past week. Think of the to-go coffees, the drive-thru breakfasts, the work lunches, the delivery dinners and late-night visits to the corner store. Challenge yourself to cut that number down every week from now on.
Here are some more tips that will help you save on food costs:
- Instead of buying bottled water at the store, get a reusable water bottle and fill it up before you leave the house.
- Buy coffee beans/grounds and brew your own coffee. Get a reusable mug that you can use when you want a coffee to go.
- Simple crockpot recipes are great solutions for anyone who feels like they’re too busy or too tired to whip up a meal for the whole family.
- Try to make more meatless meals, opting for protein replacements like eggs, beans or tofu. Meat is often the most expensive ingredient sitting on your grocery list.
If you’ve always had trouble managing your money, these are the perfect resolutions for you. You’ll have safety nets to fall back on, clutter-free bank accounts and more savings than ever before.