How do you make a resolution and actually stick to it? Make realistic goals, have a plan and find tools to help you!
Many people use New Years as a time to set financial goals. Whether it's paying off a certain amount of debt, starting an emergency fund, or keeping a budget, these tools can help you stick to your plan.
Personal Finance Manager (PFM)
If you are a Peoples State Bank customer, PFM is totally free. It is a part of online banking. If you're not, check to see if your bank has a similar program.
Add all of your accounts, not only at Peoples State Bank, but other bank accounts, credit card accounts, loans, and investment accounts. Now, you have an accurate overall picture of how you are sitting financially. This will help you plan as well see your progress clearly.
Set goals in PFM
For example, you want to pay off $8000 of debt. You can either set that as one big goal for the year or set a goal each month for the amount that you need to pay off.
Set budgets in PFM
Once you've categorized your transactions in PFM, it will generate a budget for you based on your spending. Having this guideline to build on will make creating a budget so much easier. You already know what you currently spend, now you just have to decide if anything needs to change.
Automatic Transfers
If one of your goals is to set aside $10,000 in an emergency savings account, automatic transfers could really help you out.
Schedule a reoccurring transfer after each payday from your checking to your savings account. Now, you won't forget to pay yourself first.
Automatic Bill Pay
No matter what your goal, setting up automatic bill pay will help you avoid late fees. This will save you money, time, postage, and stress. That money saved can help pay off your loan, build up your savings, or stick to your budget.
Monthly Reviews
Set a day each month to review your progress. If you're married, your spouse should be involved in this so you can make progress together and are always on the same page.
If you're single, it is very helpful to have an accountability partner. Find someone you trust and invite them to meet with you monthly and go over the goals and progress you've made. Be open to their advise on areas that may need to change in order to meet your goal.
Like any goal, it's important to think about the future reward, not the immediate pain. Keep your eye on the prize and make 2016 a great year!
Peoples State Bank - (Member FDIC)
