The 6 Best Financial Resolutions to Make for 2020

New Year’s resolutions don’t always have to be about losing weight or committing to hitting the gym—it can also be about your bank account, savings, and income. Your financial situation is one of the most important pieces of your everyday life regardless of how much you choose to pay attention to it. If you’re like most people looking to grow their savings account with every passing year, there’s no better time to start making good on your promises than the start of a new decade.

With the right mindset, budget, and discipline, you can make 2020 your year of watching your financial status rise. No more dreaming about financial security and nice numbers in your accounts, make it happen with these 6 best financial resolutions worth giving a try this year.

1. Create a budget (and stick to it!)

If you don’t already have a working budget, now’s the time to make one. If you constantly find yourself scratching your head wondering where all your money has gone, a budget serves as the perfect solution. Based on the bills you have to pay and unavoidable monthly expenses (gas, groceries, etc.), create a budget around the disposable money you’re able to work with.

Whether it’s stashing some into savings or putting it toward important purchases, having a budget will allow you to get better insight into your monthly incoming cash and outgoing expenses.

2. Reduce your credit card debt

Though nobody wants to deal with lingering credit card debt, paying off your debts is an important step in becoming financially healthy and free. Ultimately, you’re only doing yourself a disservice by avoiding at. Besides weighing on your mind, pushing your debts to the side can bog down your credit score.

Fortunately, there are a number of ways you can begin tackling your debts. One of the best-kept secret methods is opening a balance transfer credit card that allows you to consolidate your debts while eliminating the accrual of interest.

3. Work on your credit score

The average FICO score in the United States is 703—how does yours measure up? Your credit score plays a huge part in determining whether or not you’re deemed eligible for everything from credit card applications to VA mortgage loans. Whether it’s today or sometime down the road, you’ll want to have access to every possible service you need that requires a healthy credit score.
For 2020, set your bills up on autopay to avoid any late payments, keep your credit utilization low, and research other ways you can revive or boost your credit score.

4. Invest in your retirement

Setting yourself up for success means thinking of your future. Saving for retirement is one of the most important things you should be doing starting today. If you’re like many Americans who worry that they’ll never have earned the means to retire, it’s time to get serious about your retirement. Whether it’s taking advantage of your employer’s 401(k) match or investing in a Roth IRA account, figure out what works best for you and make it happen so your future self can retire in peace.

5. Start investing

Investing is an excellent way to make more money without doing too much work at all. If you’re new to the investing scene, it pays to start small rather than diving in and investing your life savings. Investing is easily one of the fastest avenues toward building wealth, however without the right direction and calculated decisions, it’s also one of the easiest ways to lose money.

Get smart about investing with these user-friendly (and beginner-friendly) apps:

6. Eliminate your student loans

As of January 2020, there are over 44 million Americans struggling with student loan debt. As one of the nation’s largest consumer debts, those in the hole for going to college start out their young adult lives with heaping amounts of debt looming over them. To get a hold of your student loan debts, begin by finding out who you owe, how much you owe, and what you can do (and afford to do) to pay off your loans in a timely manner that accrues the lowest amount of interest.

Make 2020 your year of financial freedom. With these 6 amazing financial resolutions, you’ll be exponentially closer to achieving even your biggest money goals.