With a new year comes the excitement of a fresh start. As we wrap up from the busy holiday season and get back into our routines, now is a great time to evaluate your progress over the last year and establish new goals. Whether you want to pay off debt or save for your dream vacation, creating strong financial resolutions is an impactful way to dedicate yourself to your goals and create a roadmap for success. Here are five financial resolutions to adopt so that you can make this new year one of growth, confidence, and financial freedom.

1. Create and Stick to a Budget

Even if you already have a budget, it’s important to reassess each year as your income, expenses, and goals change. Following a budget will help you be more intentional with your money and save for the things that matter. Review your bank statements from the last few months to get a realistic idea of what you spend in a month and what needs to be updated in your budget. Using a budgeting app or spreadsheet can also help you keep track of your spending.

2. Pay Down Debt

Debt, especially high-interest credit card debt, can be a huge hurdle for many people. Prioritize paying down debt so that you can free up more of your money for saving, investing, and reaching your goals. Consider consolidating or refinancing debt to make your payments more manageable. Using the snowball method and tackling smaller balances first can also help you stay motivated to pay off debt.

3. Build or Strengthen Your Emergency Fund

It’s a good rule of thumb to have an emergency fund that will cover three to six months of living expenses. If you lose your job or have a medical emergency, you want to make sure that you still have enough to live comfortably and pay your bills. Keep your emergency fund in a high-yield savings account so that you can earn interest and continue to build your nest egg even as your money sits. You can also set up automatic monthly transfers to stay consistent with saving.

4. Determine Your Savings Goals

The new year is a great time to create new short-term goals as well as re-evaluate your long-term goals. Take some time to think about what you want to save for. Perhaps you want to travel or purchase a new car this year. Your long-term goals might include things like buying a home or saving for retirement. Setting goals will help you determine how much money you should set aside every month in savings. It may be helpful to create a separate account or budgeting category for each of your goals.

5. Invest*

Investing can be a key part of your overall financial well-being, allowing you to grow your wealth over time and achieve long-term security. It may also help you reach your long-term savings goals faster. Focus on contributing more into your Roth IRA or 401K as well as stocks and bonds and diversify your investment portfolio so that your money can continue to grow.

By planning for the new year and setting strong financial resolutions, you’ll stay motivated to reach your financial goals one step at a time. To learn about how Poppy Bank can help you achieve your goals this year, visit your local branch or contact a representative at (888) 636-9994.

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*Educational content only; not legal, tax, or investment advice. Non-deposit investment products are not FDIC insured, not bank guaranteed, and may lose value. Consult a qualified advisor for personalized guidance.