Make a Resolution You Can Follow

Published on December 17th, 2014

A common New Year’s resolution for a lot of people is to be more financially responsible. However, since it is quite general, this goal can be hard to stick to. Here are a few ways to get more specific about improving financial responsibility that will help you stick to your resolution for 2015.

Follow the rule of thirds: If you receive some extra cash you weren’t expecting (bonus, gift, etc.), use the rule of thirds: put one-third of the money toward any debt you may owe, another third into a savings or investment account, and the final third for any current purchases you have.  With this rule, you will notice your debt shrink and your savings grow; it’s a win-win!

Set up an emergency fun: Whether it be an unexpected car repair, medical injury, or a layoff from work, emergency situations can put you in debt. Wouldn’t you like to be prepared? A general rule is to have three month’s worth of your normal spend (money for groceries, bills, etc.) saved for an emergency. If something is to pop up, you will be grateful.

Start planning for retirement: Even if you are just starting at your first job and retirement seems ages away, it is never too early to start putting money into a retirement fund. Put about six percent of your pay each month into this account, and if you set up an automatic transfer, you’ll hardly notice that money is gone.

Create a budget: This is one of the most important things you can do to keep your finances in order. It can seem tedious, but take your time and don’t do it all in one sitting. Gather income information, expense information, figure out where you can cut out some spending, and you’ll find a budget that works for you. Now you just need to make sure to stick to it!

Happy saving! Have a great holiday!


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