2017 is a brand-new opportunity to meet goals and start habits that we want to prioritize over the span of the year. Resolutions are made every year to stop smoking, eat healthy, or go to the gym. Although physical resolutions are terrific, it is also important to place focus on our financial habits as we start the new year. What type of financial goals do we have for ourselves? What habits should we form now to help us meet those goals? Here are five financial habits that will be beneficial for 2017.
Budgeting
Create weekly and monthly budgeting plans, and take time afterwards to review how well you are sticking to the budget. When you have a plan in place, it is much easier to save money and spend less. Reviewing how you are doing regularly will help you to evaluate where you are financially and what you should change.
Setting financial goals
Set some goals that are important to you and be vigilant in sticking to them. One goal may be to create an emergency savings fund of $2,000. Another may be to stay under budget for 6 months in a row. Whatever your goals are, write them down so that you can hold yourself accountable.
Avoiding debt
One of the greatest habits you can keep is to never create debt for yourself. This means always living beneath your means, and NEVER above. Can you create this habit for yourself for 2017? If so, you will be a happier you with healthier finances.
Contributing to retirement
Create a Roth or Traditional IRA and make it a habit each paycheck to contribute into the fund. It is never too early to start preparing for retirement. The sooner you start, the more money you will have saved up when the day comes.
Giving (some people may call this Tithing)
Make it a financial habit this year to give to others. This may come in the form of giving to a particular charity, tithing at church, or donating money to a cause you believe in. When we give to others, we are blessed in return. If allowed the opportunity, giving may do even more good in your life than you ever could have imagined.
Think of whatever habits are important to you financially this year and write them down! Writing down what we want is so important because only then can we continually hold ourselves accountable. Hang your list on the fridge or sit it by your bed. Every day make it a priority to continue these habits in your life.
If you think these 5 habits listed above could be beneficial to your own personal finances, then I encourage you to truly try to stick to them over the next 12 months. It is the small things that you do every day that bring about big change in your life. Healthy habits create healthy finances, and that’s the goal that we all should be aiming to reach. Good luck!
For more on forming habits, and ways to get rid of bad ones, check out these great articles.
5 Habits That Cost You Thousands
Increase Your Financial Stability by Taking Advantage of New Spending Habits
Sandy Smith Talks Gen Y Money Habits
I’d go one step further back and add ‘Tracking’ to the list. I think many people would guess if asked their net worth, or how much they have in stocks, savings/checking, or what they spend on different categories in a given month. Knowing your current financial position is something that should be done before any other big move, so I’d consider starting there.
Best of luck in 2017
A fantastic post, Emilie! These are some truly valuable tips. I would also suggest smokers to quit smoking. I remember that after my dad had quit smoking, our family ended up saving a lot per month. We even ended up saving enough for a trip abroad!