5 financial New Year’s resolutions

It’s that time of year again. A brand new year and time when we talk about our resolutions to better ourselves at work, home, and in many other ways. This year, why not add a financial goal to your resolution list? Even if you’re not the type to make an “official” New Year’s resolution, here are some simple steps you can take to prioritize your finances in the new year.
1. Set a budget—and stick to it

If you’ve ever been derailed by an impulse purchase or an
unexpected expense, you’re not alone. Last year my water
heater quit right as the chill set in. It certainly was
not a happy added expense! Budgeting, and including some
room for sudden expenses, is one way to be more prepared
the next time something unexpected comes up. This year,
try using some of our tools to help make budgeting work
for you. Our
spending tracker
is a great way to start looking at where your money is
going and see any trends in your spending. As you list out
your spending over a few weeks, you may find areas you can
cut back or reduce—things such as going out to eat or a
subscription you rarely use. Then, you can try filling out
a
cash-flow budget
. This weekly tool helps you assess your income and
expenses to make sure you have enough to cover your bills
and put aside money for savings goals or other things you
want and need.
2. Get ready for a new home—with confidence

Thinking it might be time to move? If you’re not sure if
you’re ready to buy a home quite yet, our guide to
renting vs. buying
shares some helpful insights.
If this is the year you think you’re ready to buy your first home, then congratulations—you’re in for an exciting time filled with many decisions. Before you make any decisions, learn about the factors that determine your interest rate and how to decide how much to spend on a down payment. Once ready, we have resources and tools to help you each step of the way, taking you through shopping for a mortgage and closing on your home.
3. Shop for any loans you plan to take out

Looking to finance something like a new home, education, or a new car? While you might carefully search for the right home or school to attend, it’s just as important to shop for the right loan for you. Fully understanding the total cost of your loan and how long it will take you to pay it down will help you stay in control of your financial situation—and may save you money in the long run.
For example, saving even a fraction of a percentage point
on your mortgage interest rate can lead to thousands of
dollars in savings over the life of the mortgage.
-
Explore home loan rates with our
mortgage interest rate tool.
-
Compare college costs and financial aid offers
to see how they might impact you down the road.
-
Use our
auto loan shopping sheet
to help you compare offers, see the total cost, and
negotiate the best deal.
4. Deal with debt

Dealing with debt is a reality for many adults at some point in their lives—whether paying off student loans, a mortgage, or other bills. The new year is a time where you can decide to get a handle on your debt and make some positive progress. If you’ve fallen behind on some payments, there are steps you can take to get back on track. If you have a debt in collection and debt collectors are contacting you, we also have resources to help you decide how to respond. While it may be tempting to avoid the issue, you can save yourself stress and more problems in the long run by taking control.
-
Behind on bills?
Three steps to help you make tough choices in tight
moments.
- Our debt collection resources can help you understand how debt collection works and what your rights are.
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5. Boost your credit score

If it’s been a while since you’ve checked your credit
records, you can kick off the new year by seeing where you
stand. You’re entitled to a free credit report each year from each of the main credit reporting
agencies. As you review, check closely for errors. If you
see anything that looks like a mistake, you should contact
the credit reporting agency to dispute it. If you want to improve your credit scores, you can try to incorporate some credit best practices into your financial routine. First, make sure to
pay all of your bills on time every billing cycle. Missed
payments can lower your scores, so try to make at least
the minimum payment on time—or more, if you can afford it.
You should know that applying for several new cards or
loans in a short period of time may actually lower your
credit scores. It’s very important to your credit score to
manage the credit you already have—responsibly.
Our credit reports and scores resources can help you better understand your credit reports and scores, learn how to correct inaccuracies, and improve your credit record over time.