Start Your New Year's Resolutions With a Financial Check-Up

It’s almost time for the new year! This is the perfect time to set realistic goals that will set you up for success next year. Let's make your financial resolutions with a practical, step-by-step method to help make them achievable.

Key Takeaways:

• Remember to think simple to kick off your financial planning.

• Make it easy to check how you're doing and set SMART goals.

• Find ways to better manage your household budget.

End-of-Year Financial Checklist

The end of the year is the perfect time to review your finances. Here’s a simple checklist to help you wrap up the year right:

• Assess Your Finances: Take a good look at everything from your debts to your savings and spending. With the average household debt going up by 4.8%, it's important to know what you owe and make plans to manage it.

• Set Up SMART Financial Goals: Make sure your financial goals for the new year are Specific, Measurable, Achievable, Relevant, and Time-bound. Instead of just trying to "save more money," make a plan to "save $300 monthly by cutting back on things like subscriptions and eating out."

• Create an Honest Household Budget: Consider your spending habits, especially in areas with big increases. Take the time to set up a budget that fits your income and life. Try a budgeting planner to help you figure out the best way to budget that gets you excited.

Read more on tips for organizing your budget.

Tackling the Increase in Debt

With big jumps in different types of debt, managing your money wisely is key:

• Credit Card Debt: Trends in credit card debt show that more people are using credit for everyday costs. Work on paying off high-interest debts quickly to avoid paying more in interest.

• Holiday Shopping Trends: About a third of Americans are expected to go into debt from holiday shopping in 2024. Make a plan for a specific holiday budget for next year to avoid falling into the same trap.

Read more on paying off your credit card debt.

Building and Keeping Good Financial Habits

You should build financial habits as they're key to keeping your resolutions:

• Discipline vs. Motivation: While the new year might get you excited about setting goals, staying consistent throughout the year is what really helps. Make regular checks on your spending and savings part of your routine.

• Small Steps for Big Changes: Focus on small, manageable adjustments rather than trying to change everything overnight. Slowly increase your savings rate or work on paying off one debt at a time.

Read more on building better money habits.

Budgeting Smartly

Here are some good strategies for managing your money:

• 50/30/20 Rule: Split your income so 50% goes to must-haves like rent and groceries, 30% to wants, and 20% to savings and paying off debts. This simple rule can help you keep your finances in check without feeling overwhelmed.

• Zero-Based Budgeting: Give every dollar a job in your budget. This approach helps you think about each spending decision and stops you from wasting money.

Learning More About Finances

Get smarter about money by using these resources:

• Get Educated: Voyage offers free resources and blogs that teach you about budgeting, managing debt, and investing.

• Reach out to Voyage: If you’re not sure where to start or need specific advice, reach out to Voyage to get personalized help.

Listen to the Tips For Change podcast for more advice on finances.

Setting Yourself Up for Success in the New Year

With a good plan and a clear view of your money, you can set realistic and achievable goals for the year ahead. Remember, it's about making progress, not being perfect. Keep track of your progress, adjust your plans as needed, and celebrate your wins along the way.

Voyage is here to help you handle your money better and build a stronger financial future.