New year resolution what is it anyway?
There is physical wellness and then there is fiscal wellness, and getting both into shape is part of most people’s top-rated New Year resolution.
Needless to say, as we all realize, making a new year resolution and actually keeping it are two drastically different things. And while I can’t really encourage you to take in less junk food and do more push-ups, I can give you some pointers on how to get the most bang for your bucks, collected from some of the greatest financial minds around.
New Year Resolution #1 “I will start an emergency fund.”
This new year resolution is a sobering one to begin our count… Only one in four US households has enough emergency savings cushion, Greg McBride, a senior financial analyst for Bankrate.com, told ABC News. For all intent and purposes, this is advisable. McBride suggests having money deposited directly from your paycheck or checking account and into a separate savings account. According to Morgan Quinn, editor of MintLife, the first priority should be building up 3-6 months’ worth of expenses in an emergency fund. “For a typical single person, that’s normally around $10k to $15k,” she said. If you have a family and a mortgage, $30k is a safer hedge. And “be sure to keep your savings in a high yield account– around 2%–so that it continues to grow.”
New Year Resolution #2 ”I will pay off what I owe.”
According to Odysseas Papadimitriou, CEO of credit card comparison website CardHub, credit card debt hovers around $7k/household. Nonetheless, this doesn’t include debt that people have defaulted on but stillare responsible for, “So, the debt picture is much worse than it’s portrayed to be,” he said. McBride feels that 2013 will be a great year to pay down higher-cost debts. “When interest rates are low, less of each dollar is going toward interest and more toward the principal,” he said. “You’ve got to make hay while the sun shines.”
New Year Resolution #3 ”I will make a spending limit.”
Even it is a new year resolution, many people dodge making a list of expenses and finances, because they find it frivolous or laborious. But it’s a requirement (especially if you want to adhere to Resolution 4, below.) “Aristotle used to say that luxuries quickly become necessities, and we are all victims of that,” said Papadimitriou. “Creating a budget sounds trivial, it helps when you get to the nitty gritty of trying to decide what is a luxury and what is a necessity. For example, your i-phone is not a necessity. TV is not a necessity.”
New Year Resolution #4 ”I will not pay any more bank fees.”
As a great number people are aware, banks are trying to make up for lost earning, so they charge on everything from monthly maintenance to overdraft protection. A May, 2012 Pew study reported that the typical overdraft fee is 35, bucks and said major banks charge a median of $117 annually. “If you can’t maintain a minimum balance, or if you don’t use direct deposit, the top five banks–Wells Fargo, Chase, Citibank, Bank of America, and USA Bank—could charge anywhere from $8 to $12 a month,” Stephanie Wei, vice president of banking and financial literacy at nerdwallet.com, a personal finance website. Although customers can take a stance, she advocates selecting an online bank, a community bank, or a credit union—”the only place you will find hassle-free, no-fee checking is at a credit union,” she said, that some credit unions in fact have more ATMs than.
New Year Resolution #5 ”I will save for my retirement.”
Regardless of your new year resolution, even if you are 24 or 64-the vast majority of people “chronically under save for their retirement,” McBride said. But since the retirement contribution limits for IRA’s and workplace retirement programs both increase in 2013, “there is room for everybody to save more for retirement next year than they did this year,” he said.
New Year Resolution # 6 ”I will build remarkable credit.”
This is vital and should be the #1 most sought after new year resolution, because the better your credit the more you can cash in on rewards and zero percent introductory interest rates. If you have sub-standard or no credit, “We generally recommend using the least expensive card possible – often a secured credit card – and making on-time payments every single month,” said Papadimitriou.
New Year Resolution #7 ”I will talk about money and estate planning with my partner and my family.”
A great number people sidestep uncomfortable discussions about money. But these dialogues are a necessary part of life. “You should make sure that your family is provided for in the unlikely event that you are injured,” said Wei. “Similarly, check in with your parents and other older family members—what plans do they have in place to protect their heirs and assets?”
My Personal New Year Resolution # 8 “I will seek creative ways to make more money.”
What is a new years resolution for me? I have done all of the above new year resolution already. Including opening an account at a credit union!
But this one is my own personal new year resolution. Last year, I decided to take massive action in seeking ways of creating more money. So I began to look online to find a lucrative way to make money at a faster pace than what I have achieved in all of my adult life!
I saw a video of this dude dressed in beach wear who had a strong message of how I could achieve my goal in a shorter time period than I had anticipated. I am amazed at the effective training system and the quick ROI!
Take a look at the first video I saw and leave a comment here of your opinion!
Click here to watch that same video.