Lifestyle

Financial Resolutions for a Prosperous 2017

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The new year has arrived, and with it, many resolutions for a happier and more prosperous life in 2017. A common goal for the new year is to improve personal finances. Unfortunately, many simply don’t know where to begin when it comes to balancing and budgeting effectively. Like all resolutions, perking up the pocketbook takes dedication and determination, but it doesn’t have to be tricky. Our friends at the financial website WalletHub recently listed their Ten Financial Resolutions for the New Year. Check out a few of our favorite tips here:

Stay on top of your credit report.

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It’s now easier than ever to access your credit report for free online, yet many people go months or even years without checking their standing. According to WalletHub, one in four people have an error on their credit report. Even if everything on your report is accurate, knowing where you stand is the best way to know where improvements can be made, as well as what loan and credit card rates you may qualify for.

Create a realistic budget.

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Budgeting sounds like a simple enough idea, yet it is where many people have the biggest issue when attempting to improve their financial situation. Only about 40% of adults have a budget, according to the National Foundation for Credit Counseling. To make a budget, list your monthly bills first, this includes utilities, healthcare, groceries, and fuel. Follow up with additional spending amounts, considering everything you spend money on, from morning lattes to weekend dinners, then rank them by importance. When it comes to saving, you want to begin whittling away at those expenses at the bottom of the list. Many people overlook the few dollars they spend daily on non-essential items, but these small expenditures can add up to big savings when creating a budget.

Make small steps towards your emergency fund.

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One expense to figure into your budget is savings. WalletHub reports that about 54% of Americans do not have an emergency fund. This is a far cry from the 12 to 18 months’ take-home income that is suggested for such a fund. While it would be virtually impossible to go from zero to fully funded overnight, WalletHub’s experts recommend starting with the goal of adding a month’s income to your savings over the next year, setting yourself up to gradually increase your savings over time.

Consider a new career.

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Budgets and savings aside, sometimes we need to focus on our actual earnings. Finding a job with better pay and/or benefits is one of the best ways to improve your financial situation. Obviously, changing careers is not as simple as turning in your two weeks notice and flipping through the classifieds. However, online job searches, career websites, and even social media have made finding a job easier than ever. There is no harm in keeping your ear to the ground for better opportunities. Other options include asking for a raise, working towards a promotion, or considering additional training or schooling to qualify you for a better position and more income.

It’s easy to let our resolutions fall by the wayside once the luster of the new year has worn off (dusty treadmill, we’re looking at you!) However, improving your financial situation will have an undeniable effect on your life and other personal goals. Finances are a huge stressor for many, especially after the holidays, so for the sake of your well-being, and your wallet, consider keeping on track with your financial resolutions in 2017 and beyond. For more information on financial literacy, visit WalletHub.com.