Set ‘em and forget ‘em: 4 Financial resolutions you can accomplish now  (2024)

New Year’s Resolutions are a mixed bag for many of us. On the one hand: personal betterment! On the other hand: close examination of our refrigerator, checking account, and various vices. On the cusp of a fresh calendar year, we feel compelled to immediately transform our lives, but — as is the case with most good things — change takes time. This is especially true when it comes to financial goals. In the aftermath of steep holiday spending, our goalposts can feel… far away.

If you’re looking for financial resolutions that you can achieve early into the new year (because who doesn’t love an easy to-do list?) here are some suggestions.

Automate Your Savings

Life is expensive, especially when you have your sights set on a vacation, home renovation, or even the creation of an Emergency Fund (which 26% of Americans report not having at all). Setting aside savings is a crucial step toward your financial health. There are multiple pathways to save, from automating contributions to an investment portfolio to downloading an app that bundles spare change on each transaction you make. If you want to avoid market fluctuations and go the straightforward route, set up an automatic direct deposit that funnels a percentage of your paycheck into a designated savings account. Then, try not to touch it.

Enroll in 401(k), IRA, or Other Retirement Plan

Speaking of savings… if your employer does not automatically enroll you in a 401(k) plan, you can sign up yourself. Unlike some company benefits (like flexible spending accounts or insurance enrollments that have deadlines), you can enroll in a 401(k) plan anytime during the year. So why not now? The sooner you can begin growing your retirement savings, the better. What you contribute is up to you, and many employers will match your contribution up to a certain percentage. If you earn income but don’t receive employer benefits, you can open a traditional or Roth IRA as an alternative.

Trim Subscriptions

One of the best ways to cope with inflation is to take the time to prioritize monthly spending. The average American underestimates their monthly subscription costs by $133, according to a 2022 survey conducted by C+R Research. People estimated they spent about $86 per month when in fact, they were spending about $219 per month. The start of a new year is an excellent time to take inventory of your streaming networks, music subscriptions, smartphone apps, wine club memberships, or any other miscellaneous expenses that might be drawing away from your overall savings goals. A spending plan can also help keep track of subscriptions and ensure that what you spenddoesn’t exceedwhat you make each month as prices rise.

Check Your Credit Report

Are you looking to take out a mortgage or make another large purchase in the New Year? This is a great time to review your credit report to see where you stand and get tips to improve your score moving forward. You can get a free report once a year from each of the three major consumer reporting companies (Equifax, Experian, TransUnion) using AnnualCreditReport.com. This allows you to resolve errors or instances of possible identity theft —you do not want creditors looking at these red flags when evaluating your application for loans and credit cards. With the exception of Experian, if you choose not to go through AnnualCreditReport.com you may have to pay a fee if you want to see your credit score.

If you’re still feeling overwhelmed about creating financial resolutions, start your financial health journey by investing in education. Take time to read literature, take online courses, and meet with professionals to help you make educated decisions about your savings, 401k, credit score, and future large purchases. With a Bay Federal Credit Union membership, members can access GreenPath Financial Wellness, a complimentary supply of financial education resources just one click away.

The content in this article was supplied by GreenPath Financial Wellness. Bay Federal Credit Union partners with GreenPath to provide free financial wellness resources to our members. To learn more and find out what GreenPath has to offer, visit www.bayfed.com/greenpath.

About Bay Federal Credit Union

Bay Federal Credit Union is a full-service, not-for-profit financial institution that serves over 86,000 members and 2,400 local businesses throughout Santa Cruz, San Benito, and Monterey counties. With more than $1.6 billion in assets, Bay Federal is the largest member-owned financial institution in the region. The organization has been proudly serving its members and the community since 1957. Bay Federal is a certified Community Development Financial Institution, with a primary mission of promoting community development alongside their financial activities. Bay Federal has an award-winning employee volunteer program in which employees have given their own money and volunteer for numerous local schools, nonprofit organizations, and community events each year.