Many people’s New Year’s Resolutions are the same year after year. The number one resolution this year, not surprisingly, is to lose weight. But what about making some financial New Year’s Resolutions? Research shows that there’s a much stronger likelihood of achieving financial resolutions than those that involve things like fitness and health! Here are some great ones that can help you save money now — and in the future:
Look into refinancing. Mortgage rates remain at historic lows but are projected to increase over the course of 2015. Studies show many Americans still have higher-rate home loans, some in the 8 percent to 9 percent range! Even if your mortgage rate isn’t that high, you still may benefit from refinancing. Refinancing can lower your monthly mortgage payment, shorten the length of time it takes to pay off your home and if you have equity in your property, can even be a source of cash. Even if you weren’t able to refinance into a lower-rate home loan in the past, you owe it to yourself to visit a mortgage lender to see whether refinancing makes sense for you today.
Cut down on your energy use. Many simple changes can translate into big savings on your energy costs. Here is an Energy Star room-by-room guide to cutting your energy usage. Don’t forget to do a bit of research to see if you are eligible for any rebates or incentives from your utility company, city or state for switching to more energy-efficient products or appliances!
Look for ways to save. A new year is a great time to examine major spending categories, including your cellphone, cable service and utilities. Are you paying for any features or time you aren’t using? Could you go with a cheaper plan? What about your land line — do you really need it? Call your service providers and see if they have any less expensive plans, promotions or ideas to help you save money. Shop around or ask for a better rate from the companies you regularly pay money to. Examine your daily spending habits. Bi-weekly trips to Starbucks or the office vending machine, lunches out, takeout twice a week and recreational shopping sprees all add up.
Schedule an insurance checkup. Meet with your insurance agent to see if you are taking advantage of any available discounts. It’s also a great time to see if you have the right types of coverage for you and your family. Ask about opportunities to save money by bundling insurance policies or having your auto and homeowners policies with the same company.
Set your savings on autopilot. Consider having an amount from your paycheck automatically diverted into a savings account or other savings vehicle. If your employer doesn’t offer this option, have an amount automatically transferred each month from your checking account to your savings account. With automatic savings plans, you don’t have to remember to save. And you’ll be surprised just how quickly automatic savings add up.
Pay down/off your credit cards. Make a plan to pay down credit card debt, with the ultimate goal of paying them off. High credit card balances in relation to your credit limit can lower your credit score, which could mean you pay higher interest rates on some types of consumer loans.
Even seemingly small resolutions, such as bringing your own lunch to work instead of going out each day, can save you hundreds of dollars over the course of a year. Adopt a few financial resolutions this year and you’ll be surprised at how much progress you can make by this time in 2016. Good luck!
