SmartyPig

Each year begins with lofty goals. But if you are anything like us, resolutions can be hard to keep. We’ve learned over the past few years that rather than attempting a lifestyle change overnight, people seem to be more successful when they set small, attainable goals. Often times, just thinking about how to approach your family’s finances can really stress you out. So this year, we wanted to share five super easy resolutions that anyone can use to put finances on track.  (A couple of them can be accomplished in five or ten minutes!)

• Know your credit score
. Good credit is the foundation for achieving your financial goals. It’s crucial to stay on top of your score. Services such as Equifax can tell you where you stand. (A good score is anything north of 700.) If outstanding debt has lowered your score, start paying it down, prioritizing high-interest debt first.  A word of caution: While it may be tempting to go all out in your crusade to eliminate debt, it’s more important to leave some cushion. Don’t wipe out your savings to pay off your credit cards, if it means that you have nothing to fall back on in an emergency.

• Define specific savings goals
. General savings accounts are great, but experts say that saving is easier with specific goals because you visualize the prize rather than the process. Whether saving for a wedding, a vacation, a flat-screen TV or home improvements, SmartyPig makes it easy to set up several savings accounts and track progress. With a competitive interest rate (2.01% APY), cash boosts of up to 12%, and the option to invite friends and family to contribute to goals, you can end up with significantly more money for your money.

• Cut up credit cards
. According to Experian, the average consumer carries 4.5 pieces of plastic — 4.5 potential paths into debt! By eliminating extra cards, you limit opportunities to spend money you don’t have. Start with cards that have high rates, low limits or punitive fees. But use scissors! Cancelling cards can impact your credit score. Cutting them up makes them just as inaccessible.

• Increase your 401K by 3%. You already know that you should contribute as much as possible to your 401K retirement savings plan — especially if your employer matches. An easy way to boost that savings is by increasing your contributions by a minimum of 3% each year. As your career progresses and your salary increases, it’s unlikely you’ll miss the money.

• Make a date with your finances. Most of us are too busy to tackle anything but the most necessary financial assignments. Bu you should really set aside time for crossing items off your financial To-Do list. Do what works for you whether it’s annual, quarterly or monthly appointments, though it helps most to schedule this time when banks and other institutions are open. Time spent finding high-yield savings accounts, better insurance plans, and no-fee cards results in more money in your pocket.

The SmartyPig Team
@smartypig
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