It seems like everyone makes resolutions to lose weight, eat better, exercise, etc. One often overlooked resolution is getting your finances and retirement planning in check. I found a great post from Fidelity Viewpoints with a month-to-month guide to help you keep your financial resolutions in 2014 .It’s that time of year again—for toasting in the new year and making your 2014 resolutions. But can you keep them?
A new Fidelity survey reveals a growing resolve among consumers. In our fifth annual Financial Resolutions study (PDF),1 we found that 54% of respondents are considering making a financial resolution—up from 46% last year and up from 35% in 2009. Resolve to keep financial resolutions has also increased, with 62% of respondents saying they have stuck with their resolutions—up from a low of 58% in 2010.
“More and more people are becoming aware of the importance of saving and reducing debt,” says J.D. Roth, a personal finance blogger and founder of getrichslowly.org. “Making resolutions is important, but it’s equally important not to bite off more than you can chew. The more resolutions you set, the more likely you are to fail.”
The shift to thrift
This year, 54% of Americans listed “saving more money” as their top financial resolution, versus 52% last year. “Paying off debt” was second, at 24%, up from 19% last year, and was followed by “spend less money” in third place (19%), according to the Financial Resolutions study.
The trend toward saving more comes as no surprise: It is a continuation of the trend that started among American consumers following the economic recession of 2008–2009. The U.S. personal savings rate had grown to 4.9% in September 2013, from 2.9% in September 2007.
Of those surveyed by Fidelity, “developing a long-term plan” and “making or sticking to a budget” have also increased in relative importance this year, capturing the fourth- and fifth-place spots at 13% and 12%, respectively, up from 9% for both in 2012.
Perhaps more interesting is that consumers appear to be shifting toward short-term savings goals (e.g., saving for emergencies and buying a car) vs. long-term goals (e.g., saving for retirement or college). While long-term savings goals still prevail over short-term ones (53% vs. 39%), the gap between the two is shrinking.
Now what about 2014? Consider the Viewpoints month-by-month guide to help boost your financial fitness. Devoting even an hour or two every month can make a difference. And while our guide is meant to link the financial issues to specific dates, there is no special significance to the sequence of these tips. Any time is a good time for keeping your financial house in order.
I will post January’s tips to get you started and then the links for the rest of the year!
January: Create a budget
One of the most important things you can do is to create a budget and stick to it throughout the year. Doing so can help you find more money to save. First, review your essential and discretionary monthly expenses and then compare them with your income. Review this information dispassionately and see whether it makes sense for you to cut costs, pay down debt, or save more. And, if you haven’t already done so, start building a liquid emergency fund of at least three to six months’ salary to cover expenses in a pinch.
Helpful tools:
- Try their Savings Planner.
- Check out their Budget Snapshot tool.
Check out the rest of the monthly tips HERE.
Manilla, my fave site for managing bills/deals and contributing to their blog Manilla Folder, has a great New Year’s Toolkit with great tips on money, productivity, home organization and lifestyle. They cover everything from “how to negotiate a raise, to getting out of debt, to making your health and fitness goals a reality, to simply being on time more frequently.”
Like Fidelity, they have some monthly tips for saving money from their partner Good Housekeeping. Here are a few to get you started:
JANUARY: Get a grip on your gas costs. Find discounts on your gas through services like FuelRewards.com. Check sites like GasBuddy.com to find the cheapest prices in your area, says Andrew Schrage, the founder of MoneyCrashers.com.
FEBRUARY: Book your travel early. Strategize and book early. Travel expert Rick Steves says that the off-season and the shoulder season—mid-April to June and then September and October—are often less expensive times to take a trip, depending on your destination.
MARCH: Declutter for extra cash.Do you really need all those books, toys, or furniture gathering dust around your house? Gina Lincicum of MoneyWiseMoms.com suggests selling what you’re not using.
Check out the rest of the year and tons of other great tips HERE.
What are your financial resolutions for 2014?