Personal Finance
December 22, 2017
By Mary Beth Eastman

3 Money Resolutions to Make for 2018

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Nearly 9 percent of people set New Year’s resolutions to make better financial decisions. If you’re ready to make a financial resolution this year, then you should focus on the following three options. They will help you do the most with your money.

If you have high-interest debt, then you should devote as much money as possible to eliminating that debt in 2018. High-interest debt typically comes from credit cards, which can charge 23 percent or more.

Before you start repaying your debts, rank them according to their interest rates. Once you’ve brought that account’s balance to $0, start repaying debts with lower interest rates.

Depending on how much you have, high-interest debt can cost you hundreds of dollars each month. Once you repay the debt, you’ll have extra money that makes it easier for you to invest and save.

If you don’t have any high-interest debt, then you should start contributing more money to your retirement accounts, including 401(k)s and IRAs.

Most people should prioritize more money for their 401(k) accounts, especially since many employers match a portion of their contributions.

Various types of IRA accounts, however, can also help you prepare for the future. If you don’t already have a financial adviser, then you should talk to a professional who can help you invest your money wisely.

This New Year’s Eve, many people will resolve to earn more money in 2018. Finding a way to increase your income, however, isn’t easy unless you get a new job that pays significantly more. For a lot of people, it makes more sense to start cutting expenses. That way, they can do more with their incomes.

Some easy ways to cut expenses include:

  • Comparing health and auto insurance quotes
  • Using public transportation or carpooling
  • Turning off lights, appliances and computers when you aren’t using them
  • Canceling memberships and subscriptions that you rarely use
  • Avoiding restaurants and coffee shops
  • Clipping coupons
  • Getting books, music and movies from your public library

Eliminating debt, investing more money and cutting expenses will make your financial health better in 2018. You just have to choose the resolution that fits your needs best and make sure you follow through with your commitment.

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