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Top 8 New Years Resolutions For You and Your Wallet

By JLP | December 23, 2007

Don’t know what your New Year’s Resolution is going to be yet? Here are a few great ideas:

  1. Quit Smoking. You might think this doesn’t have anything to do with finances, but you would be wrong. Let’s say you smoke 2 pack a week and pay $4.00 a pack. Quitting will save you $576 a year. Actually quitting will save you more since you probably purchase other items every time you stop for cigarettes (a drink, gum, a magazine, etc.). Plus your health insurance costs might go down, and your health will improve dramatically, saving you untold amounts of money throughout your lifetime.
  2. Boost your retirement contributions by 3-5%. Here’s a (potentially) easier goal to implement. You probably won’t even notice the effects on your paycheck, especially if you utilize a Traditional retirement plan. If you get a raise this year, this should be even easier. If you think this will be hard, up your contribution by 1-2% a few times throughout the year. Then pat yourself on the back for being more responsible than most Americans.
  3. Pay off your credit card(s). Seriously. Unless you have more than $20,000 in credit card debt, you should consider really devoting yourself to this goal and accomplishing it by the end 2008. You can do it! Get a roomate or a part time job if you have to. Sell your car, or some possessions on ebay. Cancel cable, move in with your parents, ditch your non-thrifty friends. Oh, and quit spending your free time shopping!
  4. Improve your image at work. Your strategy here will vary depending on your situation, but it might really pay off to make a list of ways to impress your boss and co-workers this year. Get there a half hour earlier each day, even if it’s just to read some industry-specific periodicals. Spruce up your work wardrobe with a few professional pieces. Volunteer to serve on a committee or to organize an event. Even if the task seems frivolous (like planning the company picnic), it can show that you are invested/interested, put you in contact with some new people around the company, and get your name out there. Invite a few higher-ups to lunch and pick their brains; socialize more with co-workers; etc.
  5. Reconnect with your spouse. Again, this can be an indirecly financial resolution (and not just because divorce is seriously expensive). A good relationship can lower stress, which saves money on OTC medication, improves productivity, and might even make you less likely to spend money on things like alcohol, cigarettes, eating out, and shopping (all of which are sometimes used to escape/fill a void in your life). So take an interest in each other, show respect for what they contribute to the family unit, spend more time together (and not just around the TV). You’ll be surprised how far a few nice gestures can go!
  6. Get involved in a community organization. This can be great for expanding your network while simultaneously allowing you to contribute to the community in a meaningful way. Being a part of something that anchors you to the community is great for your sense of self-worth–plus all that time volunteering and in meetings is time you’re not spending at the mall, eating out, or otherwise wasting money. So get involved at church, join your HOA board, or volunteer to serve on the board of a non-profit whose vision you share. (If you don’t have any ideas, a good start might be to get involved with a non-profit your boss and/or company supports).
  7. Lose 15 pounds. Statistically, 80% of those reading this could stand to lose at least this much weight. Losing weight may involve spending a bit at the outset to join a gym or a program like Weight Watchers. But you’ll save on medical costs down the line, you’ll feel better about yourself, and you may be forced to drop some expensive habits such as drinking wine 3 nights a week in order to meet your goals. So next time you’re considering an afternoon of potential spending at the bookstore or mall, opt for a trip to the gym instead.
  8. Cut your travel budget. Go back through each month in 2007 and tally up how much (roughly) that you spent traveling. Most people know exactly what their cable bill is each month, but they don’t budget for travel because it’s such a moving target. You probably spent a lot more than you think you did. Easter with the in-laws? 4th of July at the lake? Ski trip in Feb? Family vacation in August? Thanksgiving? Christmas? New Years? Plan ahead for 2008. If you must travel, book well in advance for discounted air fair and accomodations. But why not also substitute a few of those more expensive outlays with more affordable experiences? Forego DisneyWorld for a fun weekend at the neighbors’ lakehouse (or your own), for instance.

Don’t try to do all these things all at once. You’ll be much more successful if you pick one or two and really focus your efforts on them. What are your New Year’s Resolutions?

More from Meg at The World of Wealth

Topics: Miscellaneous | 10 Comments »


10 Responses to “Top 8 New Years Resolutions For You and Your Wallet”

  1. Andy Says:
    December 23rd, 2007 at 3:51 pm

    I disagree with #7. There are no significant health risks associated with being just 15 pounds overweight. And if you are at your body’s normal weight (which may be considered “overweight” by others) it may actually be harmful to lose weight.

  2. Honest Dollar Says:
    December 23rd, 2007 at 9:57 pm

    Re #2: I think I’m going to start contributions at 26% (what I need to contribute to max out by the end of the year). I have some savings that will help me pay the bills for the first couple of paychecks. If I find that I can’t live on my paycheck after a 26% bite, I’ll cut back. I guess that’s #2, backwards.

  3. Meg Says:
    December 24th, 2007 at 12:37 am

    Andy – I definitely don’t advocate trying to losing weight if you are not overweight. But I can’t agree that a fluctuation of 15 pounds has no health benefits/risks. In any event, I chose 15 pounds as a weight loss target mainly because it’s very feasible to lose that much healthily in a year (and keep it off), but it’s also a big enough number to make a difference in a person’s appearance.

    Honest Dollar: great job shooting to max your accounts! I’m not quite there yet, but I can’t wait until I am. :-)

  4. » Top 8 New Years Resolutions For You and Your Wallet New Years Resolutions: What’s your new years resolution? Says:
    December 24th, 2007 at 2:12 am

    [...] Original post by Meg [...]

  5. Roundup for week of 17 December 2007: Christmas Eve edition at Mighty Bargain Hunter Says:
    December 24th, 2007 at 6:46 am

    [...] All Financial Matters lists eight financial New Year’s Resolutions. [...]

  6. » Christmas Day Roundup on Consumerism Commentary: A Personal Finance Blog Says:
    December 25th, 2007 at 8:16 am

    [...] AllFinancialMatters suggests the top 8 New Year’s Resolutions for You and Your Wallet. Since most people fail at financial New Year’s Resolutions, many within the first month, I suggest taking a different approach if financial changes are truly important to you. [...]

  7. Andy Says:
    December 26th, 2007 at 6:38 pm

    Suggestion #5 – Reconnect With Your Spouse is a great one. A problem that can arise is a lot of people may think this means going out to dinner or taking them to a sports or theater event that they enjoy which can add to your financial woes. I’m not saying that this is not a good thing every once in a great while, but it really pays off to reconnect on a very personal level. My wife and I spend a lot of time together just talking together in the evenings and as the old saying goes: “TALK IS CHEAP!” We have also found creative and inexpensive dates to go on. One example is that because we both enjoy reading we will go on a book-browsing date at Barnes & Noble together. And to keep babysitting costs down, we do babysitting exchanges with friends. That helps all our marriages without adding to our costs of living!

  8. Armchair Fiduciary Says:
    December 28th, 2007 at 11:25 pm

    #8 is a great one and the description of a moving target is totally accurate. I couldn’t even tell you how many trips I took last year, but it was a lot. I also highly recommend VRBO.com if you don’t have a lakehouse and neither does your neighbor. It is a LOT cheaper than hotels typically and it is usually better accomodations.

  9. The Honest Dollar | Resolutions, Goals: Whatever You Call Them, Set Them! Says:
    December 31st, 2007 at 9:17 pm

    [...] “Top 8 New Years Resolutions For You and Your Wallet” at AllFinancial Matters. Meg has some ideas for smart financial resolutions for 2008. [...]

  10. Ramit Sethi Says:
    February 24th, 2008 at 8:32 pm

    I find it hilarious that the first commenter on this post is so resistant to losing weight. With nearly every piece of data pointing to rapid weight gain in the last few decades and an obesity problem around this country, I’m genuinely curious what kind of logic you could use to deny that we, as a nation, could stand to lose weight.

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