New Year’s Resolutions 2015 for Homeowners
The New Year is officially in full swing and as we approach the halfway point in this first month of the year, we look for ways to make the best of 2015. As a homeowner there are a number of resolutions you may want to make regarding your home/vacation home and your finances. While owning a home or even two is a great investment, it is also a huge financial obligation. To get you on the right track, check out some of the best financial resolutions you may want to consider this New Year from WalletHub.
- Get Reacquainted with Your Finances: For most of us this is an obvious step as we collect our W-2’s and additional paperwork for the tax preparer. Don’t just hand it over. Spend a few minutes looking at your financial flow and where your money is going.
- Make a Budget: Making a budget is an important step for anyone’s financial success unfortunately, very few adults actually set a budget and even fewer actually stick to it. By making a budget and sticking to it can help keep us from getting further into debt and get on our way to a debt free future.
- Implement the Island Approach: According the Wallet Hub the Island Approach is an approach from Card Hub. A theory for credit card use, it suggests that consumers should use different cards to meet specific needs in their life and that by compartmentalizing, we will spend less.
- Automate as Much as Possible: Much of the money earned by credit cards relates directly to the late fees and fines. By automating, you can avoid these fees and reduce the amount you will actually pay in the long run. In addition, many financial institutions will reduce your overall bill if you choose to have automatic deduction from your account.
- Build an Emergency Fund: The majority of American’s do not have any amount of money set aside for emergencies. This year, make a resolution to start building up your emergency fund. While optimum would be a fund with at least a year of support, even a little is better than nothing.
- Get Out of Debt: This is something that will take more than a year. Make this year the year to start getting out of debt. Make a budget, stick to it and try to use fewer credit cards. Consolidate and reduce your debts.
- Improve Your Credit Score: Improving your credit score is something most of us should consider this year. Your debt to earnings ratio, payment history and any mistakes you have made in the past can all negatively impact your credit score. A good score is a key to financial success. From buying a home to getting a loan or buying a car, a credit score can make or break your experience.
- Increase All Savings by 15 Percent: Along with your emergency fund, saving can be difficult, but this year, make a resolution to increase or to start saving. When retirement approaches, you will be happy you made the sacrifices you did early on.
- Give Back to Charity: Not only is this great for humanity and an overall feeling of well-being but charities are also great for your finances. Even if you donate time and energy instead of money, giving back is a great way to make the world a better place.
- Do Your Taxes Early: According to WalletHub, Twenty-eight percent of Americans wait until April to file their taxes leading to mistakes and costly errors not to mention prolonging stress. When you the paperwork, get it together and get it done.
- Set a Good Financial Example: In all of life, our children often learn by example. Those of us raised by our grandparents and parents who lived during the depression may find ourselves being impacted by this “saving” way of life either doing it ourselves or rebelling and doing the opposite. Remember, our children are watching how we act with our money. How we live now sets an example for our children in years to come. Set your kids up for success by setting a good example financially in 2015.
- Take Commonsense Steps to Fight Fraud: From shredding documents to shopping on secure sites and monitoring purchases, you can fight fraud by just being smart and paying attention in 2015.
- Mind Your Overall Health: Eating healthy and living healthy reduces stress, may reduce hospital expenses in the future and is just a good way to feel better. Furthermore, according to the Powell Distinguished Senior Instructor of Finance with the University of Oregon’s Lundquist College of Business. “Feeling better will lead to wiser financial decisions that focus on the long term.”
- Help Other Consumers: Sticking together, interacting with each other and supporting each other on a political and monetary level is healthy for ourselves and are country overall.
- Stress Test Your Finances: You don’t need to be a doomsday prepper to be prepared with regard to your finances. While we all hope for the best, in life, anything can happen. Instead of leaving your finances up to chance, spend a little time preparing “just in case”. Know what you need to do in case your income becomes impacted by loss of a job or worse, a death.
You can read another take on these ideas at Realtor.com here.
Just a little change can make a difference. Make the decision to become a responsible homeowner in 2015 and make your own resolutions.
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