5 Smart Financial Moves to Make in the New Year

Save more money, pay down debt, and get your life together — these popular New Year’s resolutions come with a lot of baggage. They’re big promises that are next to impossible to achieve. Some 80% of goal-setters give up on their resolutions just two months into the New Year. 

There’s nothing like starting the year on a sour note when you give up on unrealistic goals. So, why not throw out the idea of New Year’s resolutions altogether? 

Save yourself the stress of big goals and try out these small financial tasks that you can actually do. They come with none of the New Year’s baggage, but they promise big financial benefits when you check them off your list. 

1. Create a Budget

Get to know your cashflow by creating a budget. This financial plan lays it out on the line, giving you an idea of how much you earn and how much you spend. 

If you’re like a lot of people today, these two things don’t match up. It’s easy to spend a lot when you’re still struggling with interest rates and inflation. But these unnecessary expenses could be wasting your money, too. 

2. Commit to Saving at least $10 a month

A balanced budget always includes savings for a rainy day. This way, you have some cash set aside for when your car breaks down months before its scheduled tune-up. 

Everyone has to start somewhere, and $10 could be your starting point. It’s the equivalent of a combo meal at your favorite fast-food joint. If you can splurge on a burger and fries a few times a month, you can save $10, too.

3. Hunt Down a High-Yield Savings Account

Hop online and research high-yield savings accounts. These accounts promise a higher return on your deposits than the basic savings account. 

In other words, your money will grow faster in a HYSA, but you’ll still be able to withdraw these funds without penalties in an emergency. You might even be able to snag a promotional sign-on deposit to boost your savings. 

4. Shop Around When You Borrow

When you first start saving, this fund may not be big enough to deal with these expenses upfront, so you rely on personal loans to pay for these emergencies over time. 

If you need to borrow money in the new year, ensure you apply for a legitimate loan from a legitimate financial institution. Legitimate online loan companies provide responsible lending options with transparent terms that help you be an informed borrower. Shopping around can help you pinpoint the best terms for which you can qualify right now. 

5. Spend One Free Afternoon Beefing Up Your Financial Literacy

Whether you’re borrowing a personal loan or looking at 401(k)s, these financial products are hidden behind a literacy paywall. You might not understand how these products work, which can cause you to miss out on retirement opportunities or worse — you can lock into payday cash advances that are hard to repay. 

Take the time to visit the My Money Five site one afternoon you have yourself. Explore this portal to get a good grasp of the basics, particularly earning, spending, saving, and borrowing money.

Individually, these simple decisions promise a big impact on your finances. But together, they can transform your financial situation in the new year.

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