The Financial Reset: Five Resolutions for a New Year

As we step into the new year, it’s the ideal moment to focus on steering your financial journey in the right direction. Many of us set ambitious New Year’s resolutions, yet, as the weeks pass, they often fade away.  

In this blog, we’ll delve into the art of transforming resolutions into actionable plans and lasting habits, providing you with practical insights to fortify your financial path. Additionally, we break down five impactful financial goals, offering actionable tips that will not only guide you but empower you to stay on track throughout the year. 

Setting the Stage for Financial Success

 Did you make a commitment to slim down your spending or beef up your savings this year? Surprisingly, around 41 percent of Americans set New Year’s resolutions, but only about 72 percent manage to stick with them beyond the first week, and fewer than half persevere after six months. The common pitfalls? Either our resolutions are too ambitious or lack a clear strategy.  

For a more achievable approach, focus on one resolution at a time and translate your goal into an actionable plan with attainable benchmarks. In the following section, discover some practical financial resolutions to consider and how to turn them into lasting habits. 

5 Financial Resolutions to Kickstart Your Year

By incorporating these resolutions into your financial plan, you set the stage for a more secure and prosperous year ahead. Remember, small, consistent steps lead to significant financial gains over time.

Pay Down Credit Card Debt

Recent statistics show that 42% of Americans have accumulated more credit card debt over the last 18 months. Tackle this challenge with two effective methods: 

  • Debt Avalanche: Start by paying off your highest debt first. 
  • Debt Snowball: Begin by settling your smallest debt amount. 

Consider additional strategies such as credit counseling, low-interest balance transfers, or personal loans if you find yourself struggling with payments. 

Automate Your Savings:

Automating your savings contributions is a game-changer. By setting up automatic transfers, you build savings effortlessly without the need to constantly monitor your finances. This ensures consistent contributions, reducing the temptation to save less each month. 

Start an Emergency Fund

Financial experts recommend saving three to six months’ worth of living expenses. Here’s a step-by-step guide: 

  • Open a separate dedicated high-yield savings account. 
  • Evaluate your spending to identify areas where you can cut back. 
  • Set a realistic savings goal. 
  • Establish automatic contributions and gradually increase them over time. 

Boost Your Retirement Savings

  • Maximize your retirement savings by taking advantage of your employer’s 401(k) match.  
  • Review your investments regularly and consider diversifying your portfolio for reduced risk and attractive returns.  
  • Commit to a solid long-term plan for accelerated growth. 

Improve Your Credit Score

Enhancing your credit score is crucial for financial stability. Follow these practices: 

  • Pay all bills on time and in full. 
  • Lower your credit utilization ratio. 
  • Keep old accounts open to demonstrate a longer credit history. 
  • Avoid applying for new accounts frequently. 

How Fidelity Bank Can Support You Through Your Financial Resolutions

Whether you’re looking to spend a bit smarter or save a bit more, Fidelity Bank is here as your friendly partner with a personalized approach to fit your goals.

We suggest trying Fidelity Bank’s Credit Insights tool— it’s like having a smart friend, giving you easy steps to reach your financial goals. Whether it’s paying off those credit cards or boosting that credit score, our Credit Insight Tool is here to guide you. Let’s turn those resolutions into habits and set the stage for a secure financial future.