January is the traditional time for many to make resolutions. Whether those resolutions are formally written down, shared with friends, or kept private, a few timely financial promises to oneself could pay big dividends in the coming year.
These financial resolutions do not have to be complicated or elaborate. Sometimes the best financial solutions are also the simplest. Here are five great financial resolutions that may bring a brighter future in 2023 and beyond.
1. Increase retirement plan contributions by 1% (or more).
Everyone will want to retire someday, so to make those later years more financially comfortable, raising your retirement contributions by 1% is a good starting point. Of course, it can always be increased as the year progresses, but starting with 1% is an easy thing to do.
2. Add $10 (or more if possible) to emergency savings each paycheck.
Sometimes the smallest goals may be the easiest to reach, so vow to set aside $10 from every paycheck. Automate the process by using direct deposit to a savings account or move the funds manually each month.
3. Fine-tune or create a budget.
Hopefully, you already have a budget in place. If not, now is the time to create one. If you already have a budget, make a resolution to fine tune it even further. Make adjustments that create a higher level of control over expenses and income.
4. Update information for all online account logins, keep them somewhere safe and let a loved one know where they are.
If an emergency or death occurs, loved ones will be unable to access financial accounts without the correct information. Do them a favor by recording the information and keeping it in a safe place that they can access.
5. Set up an estate plan.
Make this the year to finally set up an estate plan. Having an estate plan in place is one of the best things someone can do for loved ones. It’s a smart way to provide financial protection for your family members.