5 Financial New Year's Resolutions & How To Fulfill Them
posted
on Monday, January 3, 2022
in
Education
The beginning of the year is the prime time to focus on what’s going on with your money. Here are five financial resolutions to set, along with tips on how to keep them.
1. Pay Down Credit Card Debt
42% of Americans have racked up more credit card debt over the last 18 months.
Two methods to pay down credit card debt:
- Debt Avalanche: paying off your highest debt first.
- Debt Snowball: paying off your smallest amount of debt first.
Consider credit counseling, a low-interest balance transfer, or a personal loan if you’re struggling with payments.
2. Automate Your Savings
Automating your contributions helps build savings - you won't have to think about how much money to set aside or be tempted to set aside less each month.
3. Start An Emergency Fund
Experts recommend saving three to six months of living expenses. Here are the steps to take:
- Start by opening a separate and dedicated high-yield savings account.
- Evaluate your spending and look for areas where you can save.
- Set a savings goal.
- Set up automatic contributions.
- Increase your contributions over time.
4. Boost Your Retirement Savings
If your employer offers a 401(k) match, be sure you're contributing enough to get the entire match.
Review your investments.
- Consider investing in a diverse portfolio of assets to reduce your risk but still achieve attractive returns.
- Your retirement savings will grow quicker if you pick a solid long-term plan and then stick with it.
5. Improve Your Credit Score
- Pay all bills on time and in full.
- Lower your credit utilization ratio.
- Keep old accounts open.
- Don't apply for new accounts too often.
Protect and Manage Your Credit with Credit Sense
Access your credit score* along with personalized tips on how to improve or maintain an already great score with Credit Sense. It's built right into your Northwest Bank Online and Mobile Banking App, so you won't need a new login.
*Know Your Score Today
Information powered by savvymoney©
*The credit score provided is intended to help you understand the factors that affect your credit score, and ways you may be able to save money with Northwest Bank loan products. It is generally not used for loan approval purposes or for determining loan rates. Loan rates and approvals are based on information provided to the bank when you apply for a loan. The credit score found in the credit report may be different than the credit score you see here. The offers presented here are not offers to lend; normal underwriting criteria apply. Terms and conditions and offers are subject to change at any time.