New Year’s Resolution: Save More, Live Better – Your Guide to Financial Success
Many people set New Year’s resolutions centered around their finances. They want to take steps toward securing their future and building financial freedom. If you’re one of those people, Rollstone Bank is here to help you. The new year is a great time to reevaluate your financial habits and establish goals that align with your long-term plans. Whether you want to pay off debt, build an emergency fund, or boost your savings, having clear financial goals can turn your vision into a reality.
Start with the Basics: Assess Your Current Situation
Before setting new financial goals, it’s important to see where you stand financially. Make a list of your income, expenses, debts, and savings. This gives you a clear picture of your financial health. From there, you can prioritize your goals.
For example, if you have high-interest credit card debt, paying that off might take precedence. If you do not have an emergency fund, that may be your next goal. Knowing where you stand financially gives you the insight to effectively plan and allocate your resources.
Set SMART Goals
When it comes to setting financial goals, the SMART approach —Specific, Measurable, Achievable, Relevant, and Timely — can be very helpful. When you set SMART goals, you turn abstract ideas into actionable steps. For instance, instead of saying, “I want to save more money,” be SMART about it: “I want to put $1,000 into an emergency fund by December 31st.” This goal is specific, measurable, timely, and achievable if you break it down into regular contributions.
Paying Off Debt
Paying off debt is a common financial goal, as debt can be stressful and a drain on your finances. If tackling debt is one of your goals, there are several strategies to help you. Consider using methods like the “debt snowball” (paying off your smallest debt first) or the “debt avalanche” (tackling the highest-interest debt first). Both strategies can help you stay motivated and see progress.
With less money going towards debts, you’ll have more money for other financial goals, like saving or investing. It’s a great feeling to watch your debts shrink and see your financial future becoming more secure. Our virtual debt coach can walk you through paydown strategies that fit your individual circumstances.
Building an Emergency Fund
Life is unpredictable. Emergencies like car repairs, medical bills, or job loss can derail your finances if you’re not prepared. That’s where an emergency fund comes in.
Try to set aside 3-6 months’ worth of living expenses in case something happens. Start small and build a cushion over time. Set up automatic transfers or direct deposit into a dedicated savings account to ensure consistency.
Boosting Savings and Investments
Once you’ve taken care of debt and built a solid emergency fund, the next step is saving for larger life goals, like buying a house, going on vacation, or retirement. Make 2025 the year you take your savings and investments to the next level.
If retirement feels far off, remember that it’s never too early to start. Contributing to an employer-sponsored retirement plan, like a 401(k), or opening an individual retirement account (IRA) are both smart ways to invest for the long term. Even if you can only commit a small amount each month, the power of compound interest means that small contributions can grow substantially over time.
You Got This!
By setting clear, achievable financial goals, you’re on your way to financial success. Whether you’re working to pay off debt, save for a big purchase, or invest in your retirement, each step you take toward your goals brings you closer to financial stability and peace of mind. For more information, check out the financial education suite on our website. Contact us if you would like help setting up a plan or if you have any questions – we’re happy to help.