4 Ways to Jumpstart Your Financial Resolutions
I know, I know. The holidays haven’t even arrived (yet). Why jump the gun on New Year resolutions? Because more than half of us abandon our goals within the first few months of the year. Resolutions require good habits and establishing the appropriate systems in place to support your goals and keep you on track. Before the holidays get us in a big ol’ financial mess, commit to a few small steps now that can give you a head start on achieving your 2014 resolutions.
Don’t Just Save to Save. Your resolutions need meaning. Protesting that you need to save is a good start, but what’s the reason behind it? Take time now to identify the underlying reason why it’s important for you to save or get out of debt. Is it to have more money for a real family vacation once and for all? Is it to be able to afford college for your kids? Start a business? Renovate your kitchen? When you visualize your goals, studies show you’re far more likely to accomplish them.
Automate. Start getting in the automatic swing of things now. If you haven’t already, start by placing a few of your recurring, non-variable bills like your mortgage, home insurance, student loan payment, etc. on auto-pay. This ensure your bills are always paid on time, saving you time and stress. Timely bill payment is also one of the surest ways to strengthen one’s credit score.
Share Your Resolution Ideas. It keeps you accountable and more likely to follow through. In fact, peer pressure actually helps savers stay on track. In a 2012 paper for the National Bureau of Economic Research, researchers found that participants who saved money in a self-help treatment group, where they’d publicly announce their savings progress, saved 3.5 times more frequently and their average savings balance was almost twice that of the control group.
Consolidate Your Debt. If you have numerous credit cards and tackling the various balances and due dates separately, it helps to streamline your payments into one, easy payment each month. Surf the market for a credit card that offers favorable terms for transfer balances, such as 0% APR in the first year, no transfer balance fees and no annual fee. The BankAmericard Better Balance Rewards Card is one such card. Additionally this card promotes good behavior by rewarding you with $25 each quarter when you pay more than the minimum balance on your card – on time – every month. That’s up to $100 free dollars a year. BofA existing account holders can earn an extra $5 a quarter – for up to $120 a year.
