7 Financial New Year's Resolutions for 2021 You Can Keep
88% of people fail to keep their New Year’s resolutions, but why? Why are resolutions so hard to keep? There are quite a few reasons why actually. Whether you’re failing to believe in yourself, don’t set the right goals, or are trying to accomplish too many things at once, there are numerous reasons why you sometimes set yourself up for failure.
This year, however, it’s going to be different. Why? Because we believe in you, and we can help you set the right goals. Interested in establishing a New Year’s resolution that you can actually keep? Here are seven fantastic financial resolutions that are so easy to stay on top of, there’s no way you’ll fall behind on ‘em.
Financial New Year’s Resolutions for 2021
1. Set Up Automatic Bill Payment
Want to increase your financial situation in 2021? The easiest way is to ensure that you’re not wasting money on unnecessary expenses such as overdraft fees or late fees. If you have trouble remembering to pay your bills, start 2021 by setting up automatic bill payments. It’s a super simple task that’ll save you lots of stress and money. Mark the date in your calendar a day before so you can remember to check your account and ensure you have the money to cover the payments.
2. Pay Off 20% of Your Credit Card Bill
Looking for a more aggressive financial goal? Make it a point to pay 20% of your credit card bill each month. How? Start by trying to reduce the amount you’re charging to the card; that’ll make it easier to pay off. Then, set aside 5% of the minimum payment amount each week. Over four weeks, you’ll have the 20% you need. Getting into this habit also helps later on when you’re saving for another goal. Take it little by little instead of trying to aim for the entire dollar amount all at once.
3. Create a Budget
This one’s so easy you’ll wonder why you never made it your New Year’s resolution before. Ready? Okay. All you have to do is create a budget. For most people, this is something new that they’re not used to doing, and that’s understandable. After all, they don’t teach us this in school (sigh). We’ve compiled a guide of the best personal finance apps for budgeting. From Mint to Goodbudget, there’s an app for your specific style that’ll cater to your spending habits and financial needs.
4. Focus on Your Credit Score
Not a fan of focusing on a dollar amount goal in the coming year? No worries. There are tons of financial New Year’s resolutions that don’t involve specific dollar amounts. For example, you can choose to focus on increasing your credit score in 2021. To do this, we suggest downloading a credit monitoring app like Float. It’ll tell you what’s affecting your credit score and give you tips on how to improve it (such as paying your bills on time, lowering your credit utilization rate, etc.).
5. Lower Your Credit Utilization Rate
Still focused on your credit score? It’s a great financial goal to have as it affects your ability to get great loan rates, which you might need if you’re thinking of applying for a mortgage loan in 2021. One of the easiest ways to improve your credit score is to lower your credit utilization rate. In simple terms, this means spending less. As a rule of thumb, you shouldn’t be spending more than 30% of your credit limit each month. This means that if your credit limit is $1,000, set a goal to never spend more than $300 in a single month (or until you pay off the amount due).
6. Save 10% More for Retirement
If you work better with long-term goals, make this one of them for 2021. If you’re currently saving for retirement, try to focus on saving 10% more than you already are. If you’re not saving for retirement, start now! Saving at least 10% to 15% of your income for retirement is ideal. If it helps, use the example we gave above; save 2-5% of your income each week and at the end of the month, you’ll have the 8-20% you need to put back into retirement.
7. Earn More Cashback
Is this a real resolution? Um, yes! Focusing on earning more cashback is a goal that’s incredibly achievable, too, as long as you’re spending with the right cards and using the right apps. First, download the right cashback app and learn how to use it wisely. Then, sign up for a credit card or debit card that’s optimized purely for cashback. We’re a bit biased, sure, but we suggest the Cheese Debit Card.
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Ready to take control of your financial life for the New Year? Click here to join our waiting list to receive your Cheese Debit Card.