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It’s the beginning of a new year, and it’s an excellent time to make financial resolutions. Approximately 31 percent of people make financial resolutions, but unfortunately, a lot of people don’t follow through with their plans. It’s important for people to make realistic financial goals so that they aren’t discouraged.

Evaluate Finances

Evaluating finances is the first step to making realistic financial resolutions. Calculate the prior year’s budget and net worth statement. Depending on those numbers, create a budget and determine the approximate net worth for the following year.

Eliminate Debt

The first step to eliminating debt is to focus on one card at any given time. Pay off the credit card that has the lowest balance first. By doing this, a person will be able to feel like they’ve accomplished a big goal, and they’ll be able to keep motivation for paying off other credit cards.

Create an Emergency Fund

Making an emergency fund should be a top priority. Make it a goal to put three to four months worth of expenses in an emergency fund. Having one will make sure that debt is avoided.

Cut Costs

Coupon and daily deal websites should help cut costs. Some people have a habit of purchasing something because it’s on sale, but that should be avoided. People can avoid impulsive purchases by having willpower and goals.

Ask for a Raise

If a raise is wanted or needed, having excellent performance and attendance is essential. Bosses determine pay raises and promotions based on if their employee deserves it.


If there’s ever extra money, it should be used to invest. Talking to a financial professional will help with determining an investment strategy. Learning to invest beyond a retirement account is essential.

Have Extra Income

Having extra income can help accomplish financial goals faster and easier. It may help a person retire early by funding retirement accounts and paying off debts. Additional income can be earned by selling things that aren’t used or needed, starting a blog, renting out a room on vacation rental websites, tutoring and more.

Final Words

If mistakes are made, don’t give up. Be sure to write down financial goals and keep them in places that can’t be avoided. When financial goals and resolutions are met, they should be awarded. Determine how much spending is allowed when goals are met and don’t go in debt.