7 Financial New Year’s Resolutions You Can Make This Year

 

7 Financial New Year’s Resolutions You Can Make This Year

Most of us are happy to say goodbye to 2020, a year that brought unique challenges and numerous changes. As is tradition, many people ring in the New Year with a list of resolutions, vowing to take steps to improve their lives. If you are starting 2021 with a list of resolutions, adding some financial goals will be a great way to improve your finances.

Here are some financial resolutions to consider and the steps you can take to achieve them.

1.       Save more money by changing your spending habits

At the top of any financial resolution list is to ‘spend less and save more’.

There are many ways to do this - but the simplest is to take a closer look at what you spend your money on in any given week. Do you buy coffee every day? Do you pay for services you rarely use such as a gym membership or online subscriptions? Can you live without your television cable?

After you assess your spending habits consider eliminating just one spending pattern – this small step will help you save money without feeling deprived.

 

2.       Automate your Savings

Set up automatic monthly transfers into a high-interest savings account such as ucublu – you will easily save more money and be less tempted to spend it.

 

3.       Be quick to pay your bills and slow to spend your money

Pay your monthly bills as soon as they are due to avoid any late fees. 

Also, slow down your spending decision-making process to evaluate if you need to make that purchase – this will minimize impulse buying and save you money in the long run.

 

4.       Start a Budget

You know how much money you are bringing in each month, but do you know how much you spend each month? 

To stay on top of your finances start a budget and keep track of all your expenses. Then make a plan that includes paying off your debts, and saving a portion of your income in a higher interest account.

 

5.       Pay credit card balance in full each month

Aim to pay your credit card balance in full each month. If that is not possible, then strive to pay more than the minimum required payment.

 

6.       Consolidate your Debt

If you are carrying multiple credit card balances every month and are having trouble keeping up with your household bills or other loan payments, then a debt consolidation loan may help simplify your debt repayment process. 

Taking out a UCU Debt Consolidation Loan. will also keep you on track to becoming debt-free sooner. 

 

7.       Talk to a Wealth Strategies Advisor about Your Investments

If you are looking to develop a financial plan or create an investment portfolio, then working with an investment advisor is a smart way to achieve your financial goals. 

Do you have some money saved and are curious about investing?  UCU Wealth Strategies Group can help. A UCU Wealth Strategies Advisor will work with you to create a personalized, long-term investment strategy that will suit your financial needs.

For more information please visit the UCU website

Track your Monthly Spending to Better Manage your Finances

 

Something as simple as tracking how you spend your money can be a tedious task. But tracking your daily spending is essential for building and maintaining a financial budget.  It is also one of the most important first steps to managing your money effectively.

The results of a 2019 survey by the Financial Consumer Agency of Canada found that less than half of all Canadians had a budget. Those who did said following a budget helped them manage their day-to-day finances and debt repayment. Those who did not have a budget said they felt overwhelmed and were more likely to fall behind of their financial commitments.

Tracking your spending will help you avoid problems such as incurring credit card debts, stress and anxiety.  It will also put you on the right track to achieving financial stability.

Take the ‘Track your Daily Spending for a Month’ Challenge

Take the 28-day challenge to tracking your daily spending. For the month of February, make a commitment to record every penny of you spend. Start with the big ticket items like housing, utilities and food, but pay particular attention to your other, discretionary spending. At the end of the month you will have a clear understanding of your spending habits and be in a better position to make changes.

Here are 4 reasons why you should keep track of your spending:

       1. Reduce Impulse Spending – Knowing exactly how much discretionary spending money you have each month will give you more control over your spending habits. If you see something you like, take a pause and evaluate if you can afford to buy it. Ask yourself, could the money be used to  pay down your debt or used to save it for a larger purchase

       2. Make Better Decisions – You will know exactly how much money you need to pay your monthly bills and how much money is left over to spend or save. With this knowledge, you can plan for unexpected events and put away money into an emergency fund

       3. Minimize Stress – Knowing where every penny of your monthly income goes will help you prioritize your spending, avoid late payments, tackle your debts and save for that special purchase. This will minimize stress and anxiety

       4. Improve Financial Discipline – Tracking your spending will make you more disciplined in managing your finances. You will develop the habit of planning and saving which keep you in control of your money.

How to track your spending:

There are several ways to track your spending - each with pros and cons. Evaluate your options and select the one that is best for you.

1.  Go old school and record your spending in a notebook or a printed spreadsheet

This is the most cost effective method as you most likely have paper and a pencil at home.  You just need an envelope to store your receipts and to remember to record your expenses daily.

      2.  Create a spreadsheet on your computer

No need to fumble with a pencil and paper – just input your daily expenses into a spreadsheet on your computer. You can make this spreadsheet sharable with members of your household so each person can input their own expenses into a single document.

       3. Budget Tracking Apps

There are many apps you can download on your phone or tablet which will make it easier to track and record your spending. Every time you make a purchase, just input the amount into the app – it’s that simple. 

While it is tempting to use a budgeting app, be aware there may be concerns around security. Some budgeting apps may require access to your bank account information in order to function properly while others might share your personal data with a third party. 

If you choose this option, then carefully read the terms and conditions of the app to make sure you understand what personal information you provide the app.  If you download a budgeting app you should avoid using public Wi-Fi to protect your banking information. 

For more information please visit the UCU website