4 Strategic Financial Resolutions That Actually Work for the New Year… Or Anytime
These strategic financial resolutions focus on long-term moves that actually work, not the short-lived money habits that tend to fail every year.
Taking time to plan strategic financial resolutions can lead to better money decisions and long-term financial progress.
iStock
It’s the New Year, which means it’s time for New Year’s resolutions. However, we all know the vast majority of these resolutions seem to flail.
There are a variety of reasons why these personal goals fail even before the end of the month. However, strategic financial resolutions are different. These aren’t short-term changes, but rather steps for long-term planning for your financial future. We aren’t going to give you the oversimplified advice of cutting spending and saving more, but rather larger items to consider to grow your net worth.
Here are four items to help you consider your strategic financial resolutions.
1. Spend Some Time With Yourself
Money isn’t just dollars and cents; it’s driven by feelings and thought processes.
Consider your most recent financial purchases; they may be connected to a feeling or emotion you experienced. It could be hunger, happiness, sadness, stress, or fear. Regardless, there may be something driving you to make purchases that can be examined.
Additionally, those same purchases may not be achieving what you want. For example, if you’re spending on Amazon and it’s not adding positivity to your life, you may reconsider putting that spending elsewhere. After all, it’s proven that buying things doesn’t give you sustainable happiness, as outlined in an article by Becoming Minimalist.
For example, I don’t enjoy spending money on new tech. I have an iPhone 14 that I got brand new in 2022. Instead of spending $1,000 on a new iPhone, I spent $100 to replace the battery.
The takeaway is to spend time with yourself to figure out what really matters to you. Thinking about what makes you happy and being intentional with your spending can help you guide your financial decisions this year and beyond. And if you’re spending in areas that don’t matter to you, cut that spending and move it somewhere else.
2. Focus On Growing, Rather Than Cutting
Years ago, during my own financial journey, I realized that you can only cut so many expenses. You still need to eat, have somewhere to live, put gas in your car, and pay other essential expenses. However, you can earn an unlimited amount of money.
There’s nothing wrong with living a frugal lifestyle and cutting out unnecessary expenses, but your time may be better served by improving yourself and your income. This can take several forms, such as returning to school, obtaining a certification, changing jobs for a raise (although this trend has slowed down recently, according to Fortune), or building a side business.
As part of this year’s strategic financial resolutions, think about how you can improve your skills and grow your income.
3. Analyze Your Current Financial Tools
The tools you have at your disposal can make a big difference in your financial life. For example, is your current bank charging you high ATM fees? Or is the credit card you’re using killing you with high interest rates? It can be a pain to switch accounts and products, but your future self (and your wallet) will thank you. Here are some ideas to consider:
| Current Financial Product |
What You Can Move To |
|
A checking account with few features |
A bank with no ATM fees and a higher interest yield |
|
A savings account with a big bank, earning you little to no interest |
Somewhere offering a high-yield savings account |
|
A credit card with a high interest rate and a revolving balance each month |
A balance transfer credit card with a 0% APR |
|
A student loan with a high interest rate |
Refinance your student loans to a better interest rate and more favorable terms |
You owe it to yourself to shop around for better products and deals than what you currently have. By improving the tools you have, you can potentially keep more of your money and have your money work harder for you.
Use Tools to Evaluate Your Financial Options
If you want your strategic financial resolutions to actually stick, it helps to start with real numbers, not guesses. Our financial calculators can show you where your money stands today and what’s realistically possible with a few smart changes. Whether you’re tackling debt, reviewing your monthly budget, or looking for ways to save on interest, the tools below can help turn good intentions into clear, actionable next steps.
Use these tools to help analyze where your finances stand and what could be possible: links
- Personal Loan Calculator
- Debt Consolidation Calculator
- Mortgage Payoff Calculator
- Early Loan Payoff Calculator
- Debt Snowball Budget Calculator
- Monthly Budget Calculator
- Auto Loan Early Payoff Calculator
- Auto Loan Refinance Calculator
- HELOC Payment Calculator
4. Maximize Tax-Advantaged Investment Accounts
One of the largest bills we pay over our lifetime is taxes, estimated at over $500,000 for the average American. And yes, there are legal ways to reduce your taxable income and even grow your net worth simultaneously. Here are a few accounts to consider:
|
Account |
Description |
Tax advantage |
| This is a retirement account typically provided by an employer. | The funds go into the account pre-tax and grow tax-free. When you withdraw the funds at retirement, you will pay taxes then. | |
| Roth IRA |
This is a retirement account that you can open on your own with a brokerage. |
The funds go into the account post-tax. They grow tax-free. When the account holder turns 59.5 years old, the entire balance can be withdrawn tax-free. |
| Health Savings Account (HSA) | This is an account that can be used to save for future medical expenses, and also invest for the future. |
This account is known as the triple tax advantage. The funds go in pre-tax, grow tax-free, and then can be withdrawn tax-free for qualified medical expenses. |
By saving on one of your largest bills in your lifetime, and investing for the future, you can put your strategic financial resolutions on supercharge.
Bottom Line
A vague New Year’s resolution of saving more money isn’t likely to move the needle in the right direction. Making strategic financial resolutions designed for long-term success may be an option that will net you real results.
