At this time of year, we find ourselves looking for ways to improve our lives by making resolutions to create a better, happier new year. We resolve to exercise more, to clean up our diet, and even master a new skill. And while these resolutions are excellent pathways to a happier and healthier new year, this is also the perfect opportunity to take steps to improve our financial wellbeing! A recently published FINRA Financial Capability Study highlights the importance of taking the proper steps to financial health and wellness, showing that 17% of Ohioans were spending more than they were bringing in.
Lets start a new year by highlighting a few steps that can be taken now for a financially healthier 2017!
Start saving automatically. One of the easiest ways to start out the new year on a financially healthy note is to start saving automatically! If you haven’t already, work with your bank, credit union, or employer to set up an automatic transfer to your savings account from every paycheck. By doing this, you are essentially taking the decision-making out of the process of saving, since it will be done for you automatically each month! America Saves believes this is one of the easiest ways to improve your savings, which will help set you up for better financial health in the new year.
Assess your current financial situation. This time of year offers an excellent opportunity to assess your current financial situation. Not only will this information provide great insight into where you currently are, but it will likely also provide beneficial guidance for your financial decision-making in the new year. Use your current situation to inform your budget planning for the new year, as well as help you make decisions about building your savings, paying down debt, and any other actions that can be taken to put you on the path to better financial health!
Consistently work to become more financially literate. Our understanding of financial matters — our financial literacy — is vital to making financial decisions that will positively affect personal financial health and wellbeing. And by consistently working to improve your understanding of your financial health, you will also have a positive impact on how you view your own financial literacy. One journal article explains that our perception of financial literacy could be just as important as our actual financial literacy, since confidence breeds wellbeing.
A great way to improve financial literacy is to check out the financial education offered through your local OSU Extension office!
Use technology to your advantage. One thing that I plan to do in the new year is to take advantage of all that technology has to offer those of us aiming to improve our financial lives! You may want to sign up to take advantage of bank and credit alerts, as well as other helpful financial reminders. For instance, my credit union sends me a text message daily with my updated account balance so I can start each day with a firm understanding of my current financial footing. These alerts can also tell you when suspicious account activity occurs, your account balance is low, or even when a transaction occurs that is over a certain dollar amount. Check with your bank of financial institution to see what they offer!
You can also sign up to receive financial reminders that may help encourage you to save, spend more wisely, and otherwise work to improve your financial health! In fact, by signing the America Saves pledge with Ohio Saves, you are not only pledging to save, but are also signing up to receive financial tips and information throughout the year that will help keep you on track!
