6 New Year’s financial resolutions you can keep

The start of a new year means another opportunity to make New Year’s resolutions. That’s exactly what many do: Three out of ten people set at least one goal for themselves in the new year—with 60% of resolutions focused on money or finance. Yet, most New Year’s resolutions don’t make it past the first month. This happens so often there’s now a holiday for it: Quitter’s Day on the second Friday of each January, which marks when most people typically give up on their resolutions for the year. 

Want to avoid the fate of Quitter’s Day yourself? Here are some ideas to help you make good on your plans.

It’s easier (and more common) than you might think to spend too much: Nearly three-fourths of all Americans say they overspend. Whether or not you count yourself in that group, there’s a tool to help: a household budget (worksheet included). You can see where your money goes, identify where you’re spending too much, and discover where you might save. If you don’t already budget, put this at the top of your financial resolutions for the new year. 

Tip: Use actual dollar amounts from your recent bank and credit card statements to get an accurate picture of your spending and any potential to save.

Let’s say your budgeting exercise helped you identify possible savings. If so, and if you don’t already have one, an emergency savings stash can help you create a cushion to cover unexpected expenses. There’s no set amount to start an emergency fund; put aside $10 or $50 or $100. The point is to build a habit and boost those funds, which can help you from falling behind on other financial goals. 

Need help setting emergency savings goals? Learn more about what emergency savings accounts are and how to decide when to use them. To figure out how much you need in one, search for “free emergency savings calculator.”

About four out of ten people who have a retirement plan, such as a 401(k), through their workplace don’t contribute. If you’re one of them, put this financial resolution on your to-do list. (There’s value in saving more early in your career, even if you have to stop saving along the way. See the difference in starting at age 25 versus age 35.) If you’re not sure how much you’re able to contribute, see if your budget has room to get the minimum you need to get any matching contribution. (Not sure what the match is or how it works? Learn the characteristics of a 401(k), or ask your human resources department can help.)

To nab the title of a “retirement super saver,” you can try to work toward saving about 15% of your salary. That can take time, of course, but gradual progress can help. For starters, as part of your financial resolutions, consider boosting your contributions by 1%. Or, if you’re getting a bonus, consider putting those funds toward your retirement savings. (You can also save even more if you’re over age 50 with catch-up contributions.)

Many people try to diversify the types of retirement savings accounts they have. That, in turn, gives them a range of retirement income sources to pull from. For example, opening or contributing to traditional IRAs and Roth IRAs are worthwhile considerations for your financial resolutions. And unlike a 401(k), an IRA or Roth IRA travels with you, no matter your job; you never have to roll it over into another account if you leave an employer.

Many retirement savings accounts automatically rebalance every year so that you maintain a mix of assets allocated with your goals in mind. Some, however, do not. If yours isn’t set up to automatically rebalance, consider checking your allocations.