A new year brings new opportunities and often sparks a mindset of growth and improvement. Let’s make this the year for serious progress toward financial goals. Here are three financial resolutions we recommend adding to your New Year’s financial resolutions list:

1. Use a monthly budget.

A lot of people are freestyling when it comes to their personal financial management. How much money did you spend last month? Most people aren’t sure — up to 65% said they have no idea how much they spent.^* The first step to getting on track is understanding your own financial picture, which starts with knowing where your dollars are going.

Create a monthly budget so you can see money in versus money out and make adjustments where needed. We promise that it’s not as tedious or daunting as you think, and by making financial management a habit, you’ll set yourself up for financial success. Get your budget started with three simple steps.

2. Pay down high-interest debt.

The next financial resolution? Let 2023 be the year you reduce or eliminate your high-interest debt. Many people use the debt snowball method for repaying debt, paying off the smallest balances first to train themselves into a debt-repayment mindset and then “snowballing” from there into paying off the larger balances.

There is another method: the debt avalanche. This involves paying off the balances with the highest interest rates first. That way you’ll pay less in total over the life of your loans because you cut down the compounding interest. A great move to pair with this strategy is to consolidate the higher-interest debt to a lower rate wherever possible using balance transfers to minimize the amount you spend on interest. (Learn more about balance transfers at Grow.)

3. Set a new financial goal.

A down payment on a home, a vacation, a new car or something else that’s on your mind. What motivates you to save? Make some progress toward your dream in 2023. We recommend creating a separate savings account for this specific goal and saving a set percentage each paycheck, that way saving becomes second nature. It’s okay to be a little aspirational with your financial goal, too, because dreaming big can be a great motivator. It’ll be easier to say no to discretionary spending in the short term in pursuit of your larger goal. (Check out Club Accounts, which are great for separating your goal funds into their own savings bucket.)

Why set financial resolutions?

In a time when “new year, new me” is saturating the airwaves, let’s capitalize on that attitude and extend it to our finances too! A new year is a great time to reflect, reset and look toward the future. Even if traditional New Year’s resolutions aren’t your thing, we hope that creating financial resolutions will help you along your financial journey this year. For more financial literacy education and resources, visit growfinancial.org/education.

Grow Savings Accounts are subject to ChexSystems^® approval.
^*According to a Mint survey conducted from April 30 to May 2, 2020. https://mint.intuit.com/blog/budgeting/spending-knowledge-survey/. Accessed January 4, 2023.

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