Financial Resolutions to Keep in 2014

December is the perfect time to reflect on the past year and look forward to the future. It’s the ideal period to make New Year’s resolutions that will help you grow and improve your life. This article offers some examples of financial resolutions you should definitely consider for 2014.

It’s almost the end of the year, so it might be time to start thinking about your New Year’s resolutions.  Consider what you can do differently next year, in order to look back at the end of 2014 with a sense of pride and accomplishment. Below, we’ve gathered some New Year's resolutions to help you improve your finances. Take a look!

Set financial goals

Figure out what you plan to accomplish in the next year from a financial point of view. Choose goals you get excited about – you will be more determined to reach them. Maybe you will want to buy a new car in 2014, save enough money to go on a well-deserved family vacation or redecorate your living room. Whatever it is, write it down. Next, try to estimate how much it will cost to reach your goals and how much you will have to save every month in order to accomplish them.

Start living on a budget

Living on a budget can considerably improve your life. It might take some patience and organizational skills to plan where every penny is going and to adjust your spending habits, but it will be worth it. Budgeting will allow you to align your priorities and better control your spending.

Save a little every month

If you haven’t done it yet, it’s probably time to open a savings account. Put aside a minimum of 10 percent of your income every month. If you do this, you will manage to build a considerable emergency fund over time. Having an emergency fund is mandatory in the current economic climate. Your savings can financially prepare you for the unexpected. Aim to save enough to cover at least six months of living expenses. This way, you will be prepared in case you experience unemployment or other financial hardships.

Reduce your debt

There are many people who don’t even know how much debt they are in. Start by evaluating who and how much you owe. Apply for a debt consolidation loan, contact a financial advisor that will help you manage your debt or negotiate new arrangements to improve the terms on your debts.

Reduce your monthly bills

Do your best to downsize in order to boost your savings. Reevaluate your cell phone plan, cable TV and gym membership. If you have pricey unlimited packages and aren't using them to the fullest, maybe you can downgrade to something cheaper.

Close accounts you no longer use

A lot of people don’t take the time to close account they no longer use. This leaves you subject to inactivity fees, so get rid of them as soon as possible.

Get off to a great start in 2014 and you will develop healthy financial habits that will benefit you for years to come. Happy New Year!