Ring in the New Year with good financial health: 5 financial resolutions

January 21, 2022

It’s the new year, and you know what that means. It’s time to reset your New Year’s resolutions! Let’s start fresh with a new set of goals, ones that specifically support your financial health. This topic can be discouraging for many. Lucky for you, we have a group of financial experts here to help you achieve your budgeting, saving, and investing goals.

Reflect on last year. How did you do? Did you stick to your goals? If not it’s okay! Think of January as another chance to meet your mark and better your financial health. 

People often see New Year’s resolutions as goals you’ll soon forget or give up on. If we had one piece of advice for you, hold onto your financial resolutions. This is the right step to feeling comfortable and confident in your financial status. 

“I want to budget my money this year.”

Budgeting is probably one of the most common New Year’s resolutions, but that’s because it has such a key role in feeling stable with your spending and savings.

A good place to start with budgeting is to add up your expenses and belongings. This will give you an idea of your net worth and pinpoint areas you might be able to cut down on expenses.

A popular technique to keep you on track with wiggle room for non-essentials is the 50-20-30 rule. This method is a smart way to structure your savings and your expenses. Fifty per cent of your income will go towards essentials such as groceries and bills. Twenty per cent should be for your savings account, and the remaining 30 percent can go towards non-essential purchases, also known as your ‘wants’. We like this method because it allows room to have fun, which is just as important as saving.

Setting up a budget may seem like a burden or another trigger for your anxiety. We want you to know you’re not alone, and there are plenty of resources to help you along the way. Whether it’s a free budgeting app on your phone or our wealth management team, you’re heading in the right direction. This isn’t a sign of weakness, It’s a sign of strength! Our wealth management team is here to help and is only a phone call away.

“I’m going to pay off my debt this year.”

Ah yes. The heavy wait on your back that you’re constantly carrying around, also known as your debt. You’ve been meaning to get around to this goal, right?

Start the New Year off by tackling the balance you owe. Even if you can’t pay it off in full, decreasing your loans is better than letting them sit there while racking in interest fees.

Make sure you work your debt payments into your monthly or biweekly budget. You should make your payments first before spending your money on non-essentials. This will ensure you have enough money to make a payment each pay period and eventually pay off more or all of your debt.

Here are a few more tips to help you pay off your debt this year:

If possible, look into switching to a debt consolidation loan. This may be a helping hand if you find yourself struggling, as you’ll save yourself a ton of money in interest fees doing so.

“I want to improve my credit score this year.”

Obtaining a good credit score isn’t as complex as it sounds, but it is a crucial piece of your financial health. Having a strong credit score will give you access to many advantages: the top credit cards, the lowest interest rates, and it can also work in your favour when you’re looking to move into that new apartment.

Here’s a short list of things you can do to improve your credit score:

1. Pay your bills on time. Lenders look at your ability to keep up with your credit card payments when deciding if you are capable of paying a loan back promptly. If you don’t have enough to pay in full this month, pay the minimum. Don’t delay any bill payments.
2. Set up automatic payments. This will remind you if you often miss your payment deadlines.
3. Limit how many credit lines you have. Make sure you’re only applying for what you need to avoid damaging your credit score. The more credit you have, the more risk you are at for hurting your score.
4. Try to use less than 35% of your available credit. It’s better to have a higher credit score and use less of it each period. This way, lenders will see you as low risk.
5. Use a mix of different credits. Rather than having four of the same credits, mix it up a bit with a credit card, a car loan, and a line of credit.

Are you still looking for more answers based on your specific financial situation? Reach out today and book an appointment with one of our skilled lenders. They will guide you through the intimidating world of credit and loans.

“I should start investing this year.”

 Whether you are saving for your first home, planning for retirement, or protecting your financial health, investing is one of the things you can do to prepare.

The term Investing can be overwhelming for people, but we promise it’s not as scary as it sounds. Investing is an effective way for the money you’re saving to build in wealth. It can increase the value of your money throughout the years. The earlier you start investing, the more time your money has to grow.

If you’re not sure where to start our Sunova Financial Services team can help you achieve your financial goals. With professional experience and knowledge, we can help you plan efficiently and professionally implement your investments – even in a challenging marketplace.

“I’m going to cut back my expenses and spend less.”

We’ve all said this one before. By spending less, we don’t mean trapping yourself in a boring and unfulfilling budget plan. We simply mean decreasing your purchases on non-essential things.

Start by taking a hard look at your budget. Try to find the areas you could cut back the expenses on such as random coffee runs, eating out every weekend and impulse shopping. This could save you a significant amount of money each month.

Here are a few tips to save you some cash each month

• Make a grocery list (and stick to it)
• Make coffee at home
• Bring lunch to work
• Meet with a friend or have date night at home
• Cut back on your subscriptions
• Shop with coupons

Don’t give up

Remember to pick New Year’s resolutions that are realistic for you and your current financial health. New Year’s resolutions give you the opportunity to make positive changes within your lifestyle. Setting goals that you are only going to abandon does no good in the end. Some of your financial goals will be more challenging than others, but you should expect that when attempting to change habits.

Change can seem daunting, but if you fast forward to next December and imagine your life with these resolutions accomplished, you’re going to feel a whole weight off your back and confident in your financial health.

We are here to help

Contact your local branch or Help HQ if you require any additional information regarding your finances, accounts budgets or loans. Our staff are a valuable source when it comes to financial literacy. We are happy to help our community and members.