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Tips to help you achieve financial New Year's resolutions

New York New Years
Posted at 4:00 AM, Jan 02, 2023
and last updated 2023-01-02 08:26:39-05

Whether you're hoping to pay down some debt or save for early retirement, most of us have financial goals for 2023.

But how can you make those money resolutions stick?

It's easy to plan them but tough to keep on track, and many people drop their great plans by the middle of January.

Finances will be even tighter this year for many families since there are no more stimulus checks or expanded child tax credits. But some simple money resolutions can help, according to Ted Rossman of Bankrate.com.

Set up automatic savings

Rossman suggests you start the year by setting up automatic transfers to build your emergency fund.

"It takes that decision-making out of it," Rossman said. "So, actually, set up a transfer, have money taken out of every paycheck and automatically sent to a dedicated savings account."

Plus, he said, the savings rate is much more attractive right now, with online savings rates as high as 4%.

"This is one of the silver linings of the fed raising rates," Rossman said.

Eliminate unused subscriptions

Next, Rossman suggests you look for ways to cut back, starting with monthly subscriptions you don't use, like TV streaming services you barely ever watch or a health club you rarely visit.

Also, be on the lookout for autorenewal subscriptions that hit your credit card every January without you knowing.

"If it's something you're not really benefiting from, canceling that has 12 times the annual impact," he said.

Pay down your debt

To pay down debt, Rossman suggests applying for a zero-percent balance transfer card which could provide a temporary break from high-interest charges.

"Don't make any more purchases on the card," he said. "Just divide what you owe by the number of months in that term. Try to stick to it."

Bankrate's top balance transfer cards for 2023 include:

  • Wells Fargo Reflect
  • Citi Simplicity Card
  • BankAmericard from Bank of America

Consider odd jobs or side hustle

Lastly, Rossman suggests considering a side hustle, even for a few months.

That way, you have extra money to put toward your 2023 goals, and you don't waste your money.
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