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New Year, new bank account. That is the theme Americans are bringing with them to start the year off right. One in two Americans plan to make finance-related goals, according to a WalletHub survey, as an uncertain future becomes more of a reality.
At the same time, nearly one in four say financial resolutions are the hardest to keep. Taking a fun, unique, or bold approach could be the difference between meeting goals or giving up on them within a few months.
Here are eight fun ways to tackle financial goals or resolutions this year.
‘Be Bold. Be Intentional’
James Thompson, senior national director of Diverse and Multicultural Wealth Segments at Bernstein Private Wealth Management, recommends thinking big as you make your resolutions.
“Don’t be shy!” he says. “Identify some of your biggest goals and dreams for your money and let that inspire how intentional you are with your budgeting. Purpose creates perseverance, so ensure that your budgeting outcomes create a pathway to achieve some of your biggest dreams.”
See It and Believe It
Vision boards have grown in popularity in recent years. LaQueshia Clemons, Licensed Clinical Social Worker and Accredited Financial Counselor at Freedom Life Therapy, says these are trendy because they help people get a “visual of their goals and encourages them to remain focused.”
For example, she adds, “Maybe you need to buy a new couch, so you put it on your vision board and plan to save money to buy a new one within your budget.” Or use it as inspiration for life without the burdens of debt.
Try Your Own ‘Personal Finance Brunch Club’
Food is a great way to bond with others. Why not bring finances and accountability into the mix?
“The idea is to blend financial learning with the social, relaxed atmosphere of a brunch,” Renée Baker, founder of The RBI Group, says. It could be a monthly club or quarterly, depending on the availability of the group. But each meeting should involve meeting somewhere with food and drinks and discussing one or more book chapters.
“This format not only makes learning about finances more enjoyable but also encourages practical application of the concepts discussed in the book. It’s a fresh approach to financial literacy. Moving beyond the basics of budgeting and debt reduction, and fostering a community of like-minded individuals eager to expand their financial horizons.”
Baker recommended “Why Should White Guys Have All the Wealth?” by Cedric Nash and books by Deborah Owens, author, wealth coach, and founder of WealthyU, to get started.
Financial Fun for Kids
Children need to understand money’s value and potential when used strategically. Evan Potash, executive wealth management advisor at TIAA, recommended opening a brokerage or investment account for the children in your life.
“Get them involved in buying a share of their favorite companies — whether it’s a Disney princess or Activision Blizzard, [a video game company],” he says. “This can help build financial habits early and make them feel like they’re an owner of their favorite company.”
Plan to Travel for Free — Kind Of
Potash also recommended taking a new approach to travel in the new year by utilizing credit cards from airlines and companies that might be offering large signup promotions.
“If you have a good habit of paying off your credit cards, now it’s your turn to get paid from the airlines,” he says. “When you sign up for some credit cards and spend a certain amount, you get as many points as you would when you buy domestic, roundtrip tickets. Keep in mind, though, that you don’t want too many credit cards because it can lower your credit score.”
Save for Christmas and Other Holidays Starting Now
“People should resolve to set up a “Christmas club” or “holiday club” account, which was popular many, many moons ago,” Jeffrey Mellone, executive wealth management advisor at TIAA, says. “They were subconscious savings that people did to achieve their overall savings goals.”
Mellone tells Word In Black that the easy way to do this is to set up a bank account without a debit card and automate monthly deposits. Every month, try to increase the amount added.
“The idea is to see how much you can save/remove from your normal monthly cash flow without really noticing,” he says. “Once you find a level that’s sustainable, see how long you can continue without needing to access it.”
Use this method for general savings goals like an emergency or moving fund.
Use It or Lose It
Many Americans can access employer-sponsored savings plans like a 401(k) or Roth 401(k). The Internal Revenue Service recently announced a new maximum for yearly contributions. Starting this year, Americans can deposit up to $23,000 into a 401(k).
“Make the most of your workplace benefits,” Lawrence Delva-Gonzalez, auditor and financial literacy educator at The Neighborhood Finance Guy, says.
A New Take on Potlucks
In addition to workplace benefits, Delva-Gonzalez suggests taking up meal prep challenges with friends and family to save money.
“Every month, link up with five friends to exchange dishes,” he says. “It’s a delicious way to save money by cooking at home, learning recipes, and even eating great by exchanging a dish.”
