Top 5 New Year Money Resolutions You Should Make Now

It’s a new year and it’s time to make some resolutions. Why not promise yourself that you’ll start making better decisions about how you manage your money?

Here are 5 New Year money resolutions that you should make right now.

1. Use Credit Cards Only in Emergencies

You might have a variety of student credit cards or retail charge cards that make it way too easy to buy what you want. Resist the urge to use plastic when you’re out shopping.

Remember, credit cards have interest rates attached to them. When you buy something for $50 using a credit card, you’re actually paying more than the $50 price tag because of the interest expense attached to the purchase. It’s best just to stick to cash as much as possible.

2. Spread Around the Extra Money

Every once in a while, fortune smiles on you and you receive some extra cash. It could be an unexpected bonus from work, a tax refund, or an inheritance.

When you get that additional income, apply the principal of thirds to determine how you’ll use it. Put one-third of the money into savings, another third into debt relief, and the last third into some type of home improvement or other useful purpose.

3. Create a Slush Fund

You’re going to need that additional income for the proverbial “rainy day.” If you don’t yet have a savings account packed with cash that you can live off for a few months if you lose your job, then make a New Year’s resolution that you’ll start putting away at least some of your income into a nest egg.

Even if you don’t lose your job, you might have to spend the money on some type of emergency. You could need a new roof, an expensive plumbing repair, or a new heater. It’s tough to predict what curve balls life will throw your way. That’s why it’s a good idea to have money on hand that you can access for emergency purposes.

4. Commit to Saving Money

There are countless ways to save money that many people routinely overlook. Make it a point in the new year to search for ways that you can save money on items that you purchase.

For one thing, take advantage of the coupon section of your local newspaper. Also, be sure to search online for coupons that you can use when you go shopping. If certain grocery stores in your area are known to offer double- and triple-coupon days, make a note and shop there on those days. Also, use a rewards card for purchases so that you can save money in the long run.

5. Make a Budget and Stick to It

You’ve put it off long enough. Make 2016 the year that you finally sit down for a couple of hours to create a workable, realistic budget. Then, have the financial discipline to stick to it.

With the new year comes new opportunities to get your financial house in order. Make the right decisions about your future and watch your net worth grow over the years.