Three Tips to Keep Your Financial New Year’s Resolutions

Tiffany Aliche, aka the Budgetnista, has released three very helpful tips to help you stick to your financial resolutions in this new coming year.

Aliche has three steps that could help you see success with your money goals in 2021.

The first step is to be intentional. “Be intentional when you’re setting your New Year’s financial resolutions before the new year actually comes,” she says. “It’s really important with the kind of year we just had, that you look forward to the new year with hope, with boldness, with joy, but also with intention!”

According to Aliche, by being intentional, achieving your financial goals will be easier with a clear, straightforward plan.

Aliche offers an example with Grow writer Shawn Carter who wants to grow his emergency savings. Shawn says he’s aiming for 3 to 6 months worth of expenses, which he estimates at $6,000 to $12,000.

“This makes my heart sing! But honestly Shawn, it depends on your industry,” Aliche says.

Aliche then says the second step should be prioritizing your efforts. The Budgetnista says if you have multiple financial goals, it’s important to figure out how much money you’re working with and which goal to prioritize.

Aliche offers another example with Grow video producer Helen Zhao, who wants to invest next year. Aliche recommends that Zhao start by making the most of her workplace retirement plan and focusing on Warren Buffett’s favorite investment, index funds.

Zhao should also first make sure their other financial bases are covered says Aliche. For example, experts generally recommend paying down high-interest debt and building an emergency fund before focusing your financial efforts on investing.

“Are your bills paid on time? You’d be surprised at how many people are not on time with their bills, yet they want to learn how to make more money in the market,” Aliche notes.
The third step is ‘Split it before you get it.’

Using Grow writer Gili Malinski, who is also planning to beef up her emergency savings, Aliche says: Pay yourself first. “Split it before you get it,” she says. “Ask HR how many ways you can split your direct deposit.”

According to Aliche, you may be able to have a portion of your paycheck automatically sent to a separate savings account. You might also set up automatic payments or recurring contributions to your savings and investments.

By paying yourself first, meeting your financial goals is easier. “You don’t even have to think about it. It’s like budgeting without the budget,” she says.