WalletHub’s Best Personal Finance Resolutions Before Midnight
It is almost midnight on December 31st. Are you ready ?
A timeless tradition for many of us on December 31 is to reflect on the events of the previous year and make resolutions or set intentions for the year ahead. After 2020 gave us the “adventure” that it was, and with 2021 looking like an enthusiastic second runner-up, it makes sense that people are feeling nervous in the department of what’s to come, or as some say. “to be continued ?!”
While you can’t predict whether you’ll get that raise or bonus, change jobs, or go to the gym regularly three times a week, there is something you can think about and set yourself a few goals: your finances.
If you take this exercise, according to a WalletHub survey, you are in great company. More than 92 million Americans have said they are likely to pass 2022 resolutions that directly affect their finances. Notably, nearly a third want to save more money, making it the highest resolution across the board. However, WalletHub’s results also reveal that despite the best intentions, only 42% expected to make it a full year, and seven in 10 people admitted that in the past they cheated on a resolution.
Without a proper plan of attack, it’s easy to see how any resolution has the potential to become the good idea you once had. But with your finances, it’s important to stay prepared so you don’t have to prepare. Here is some info:
Establish and maintain a realistic budget
Budget isn’t a dirty word, but if this is your first time or after being close to spending, bringing it back can be a painful start. What is more painful, however, is the amount of credit card debt that the National Credit Counseling Federation says we have increased in 2021 and our debt currently stands at over $ 950 billion. The good news: WalletHub says making a realistic budget that you can stick to is simple. All you need to do is put together your bills for the past few months and make a list of all your recurring expenses. “Then rank them in order of importance, with real necessities such as housing, food and health care obviously taking the top spots. Other steps include chatting from the bottom of the list until the amount you bring home “exceeds what you plan to spend” and tracking monthly expenses throughout the year “for you make sure you stick to your budget, ”according to WalletHub.
Pay off 20% of that credit card debt
With the average household with around $ 8,000 credit card debt, the thought of facing this beast after all you’ve been through for the past few months could be understandably daunting. Best plan of attack: Start small and remember that a 0% balance transfer could be your best weapon in combat. According to WalletHub, a credit card holder in debt of $ 8,000 can pledge to repay 20% over the course of the year and would spend around $ 1,600, or $ 133 per month with a card offering 0 balance transfer. % for 12 months or more. “If you can afford the higher payouts, do them by all means,” WalletHub writes. “The sooner you can achieve debt freedom, the better your wallet will be. “
Speaking of credit cards
Did you know that credit cards serve different needs and purposes that could benefit you in the long run? In addition to a 0% balance transfer-type benefit, the use of different cards for different purposes (known as the Island Approach because consumers use their cards as if they were one). island chain) can create some pretty good rewards and kickbacks in the long run, according to WalletHub. “This allows you to get the best possible deal on each card, rather than having average conditions on a single card. “
Physical health is always an asset
The latter is a bit doozy for most of us. How many times have we said we would do something to improve our overall health, like getting a gym membership or buying new sneakers to start running, only to watch a few months later and realize we should cancel? this subscription. don’t use or note that the sneakers didn’t have as much time on the road as we initially hoped? WalletHub notes that the average person spends about $ 5,177 per year on healthcare-related expenses. Meanwhile, our biggest sources of stress are money and the economy, according to the American Psychological Association. “It underscores the importance of getting your finances in order, exercising regularly and adopting other healthy practices aimed at lowering healthcare costs,” writes WalletHub. “It won’t be easy, but it’s a resolution that will definitely pay dividends in many areas of your life.”
As you count to midnight and anticipate or dread what’s to come, wouldn’t it be nice to have a less gigantic worry like your money hovering over your head? I’ll drink this!
For the full list and report from WalletHub, click here.