2017 money resolutions: Small steps now for big gains later.
Most of us don鈥檛 stick to聽our New Year鈥檚 resolutions, often because they鈥檙e too ambitious: Lose 20 pounds! Go to the gym every day! Finally get a handle on money!
Our enthusiasm runs out long before the rewards roll in. But what if you could get some early momentum, then use those gains to fuel your resolve for the rest of the year?
If fixing your finances is among your resolutions for 2017, try these聽simple, do-it-now strategies聽that can accelerate your progress toward personal finance victories throughout the year.
Set a budget
Does the thought of creating a budget聽feel as daunting as climbing Everest? Knock off small, strategic steps聽first, then let them build toward an overall smart spending plan.
Do it now:聽Look over your 2016聽credit card bills; some card issuers even provide a year-end statement grouping expenses by category. Call your credit card company to find out. Once you know the details of your credit card spending, cancel recurring payments for things you don鈥檛 use, like magazines that just pile up or streaming services you rarely watch. End聽auto-renewals on services you didn鈥檛 intend to sign up for or don鈥檛 need.
Long-term goal:聽Sign up for a聽聽and use it to get a picture of your spending patterns. Use that information to try out the聽.
Fill an emergency fund
Saving for emergencies comes before trimming debt or building credit. Why? Without a cushion, any unexpected expense can quickly lead to spiraling debt and bigger credit card balances. Ideally, you want your emergency savings to equal three months of living expenses. But if that seems impossible,聽聽can keep you out of a debt spiral.
Do it now:聽Funnel the savings from your credit card and expenses review (see budgeting tip above) into your聽. File your taxes ASAP, and use part or all of your refund to make quick progress.
Long-term goal:聽Want to beef up your fund and your credit score at the same time? A聽聽can provide that two-for-one benefit. These loans are easier to get than traditional loans, because you pay off the amount first, then the cash is released to you. Add that cash to bring your emergency fund up to the level you want.
Build credit
Good credit makes life easier: You can secure聽lower interest rates when you borrow, it may lower your car insurance rate, and you look better to potential landlords.
Do it now:聽Sign up for a聽, such as the one offered by NerdWallet, that also offers credit report information. Next, set up automated reminders for bill due dates and alerts if your balance is approaching 30% of the limit on any one card.
Meet your long-term goal:聽聽you see on your credit report; getting inaccurate negative information removed can boost your credit. Monitor your report throughout the year.
Stay on top of due dates and balances with those聽alerts. Paying on time and keeping your聽聽low are the two biggest influences on your credit score.
Reduce debt
This is a聽biggie, and it defeats many people every year. The key: Doing something 鈥� anything 鈥� is better than avoiding your debt. Even baby steps will build a habit that helps in the long run.
Do it now:聽Get a handle on your debt by making a list of聽everything聽you owe, noting聽payment amounts and interest rates. Read about聽聽and choose the one that fits your personality.
Long-term goal:聽If your debt list revealed a lot聽of high-interest debt,聽calculate how many years until you pay it all off. (You can use the聽聽in this story.) Once you have the timeline, consider聽聽鈥� but only if the loan gives you a lower rate or accelerates your payoff schedule.
If you don鈥檛 qualify for a loan because of your credit profile, don鈥檛 despair. Just continue your credit-building activities and try again in a few months.
If reality hits and you determine聽you鈥檙e unable to pay off your debts within the next five years, we suggest talking to a聽听辞谤听.
Plan for retirement
Are you also in full avoidance mode when it comes to your retirement? Make this the year you face it head on and with commitment. You鈥檝e heard it before, and it鈥檚 true:聽The聽earlier you start the more impact your contributions聽have. Do more now so you can enjoy more later.
Do it now:聽Bump up your聽聽by 1% or more. Your employer or the 401(k) company鈥檚 website should make this easy. If you鈥檙e not enrolled, enroll now. They鈥檒l make this easy, too.
Long-term goal:聽If you don鈥檛 have access to a 401(k),聽. It requires a little more effort than increasing a聽contribution to a聽workplace聽plan, but it鈥檚 still manageable 鈥� and highly beneficial.聽Another long-term step that鈥檚 key to retirement savings: Make it a habit to divert half of any raise or聽bonus you receive into your 401(k) or IRA.
This story originally appeared on .
