Fifty-four percent of Americans planned on making a financial resolution for 2015. According to a new poll by GOBankingRates, saving money, paying down debt and improving spending continue to top the list. Given only 8 percent of people actually achieve their resolutions, it might be time to change things up a bit.
This post originally appeared at GOBankingRates.
Here are seven things you can do this month to positively impact your finances all year.
Finally Create a Budget
Making a resolution to just spend less is too vague — you'll never be able to spend less if you don't know what you are spending in the first place.
Instead, make a commitment to learn to stick to a budget. The good thing about budgets is that they are flexible — the budget you set in January is going to be very different than what you end up with in December. Life has a tendency to throw curve balls and your budget will change as your life does, so don't get too locked into the idea you have to stick to your first shot. Successful budgeters know it takes time to find a system that works, so use the entire year to perfect your budgeting skills.
See a Certified Financial Planner
Even if you don't have a lot of money to save or invest, the benefits of seeing a certified financial planner (CFP) outweigh the costs. A good planner will examine your financial picture, discuss your goals and help you come up with a long-term financial game plan.
CFPs are often confused for investment advisors; investment advisors recommend investment products and manage portfolios, while CFPs take a broader look at your finances and offer advice on budgeting, debt, tax planning, saving and more. A Certified Financial Planner can also assist with estate planning, which leads me to…
Establish an Estate Plan
Think you aren't old enough or wealthy enough for estate planning? Think again. If you have a spouse, children, elderly parents, own your own home, a savings account or investments, then you need to establish an estate plan.
Estate planning involves everything from creating an advance health care directive to designating a guardian for your children to adding beneficiaries to your insurance policies.
When someone doesn't do estate planning and then they pass away, their family winds up in probate court, which is expensive and time consuming. LegalZoom estimates that probate costs American families $2 billion a year — $1.5 billion of which goes to attorneys' fees alone. Estate planning will save your loved ones any additional grief and ensure your wishes are carried out as you intended.
Buy Life Insurance
If you passed away today, would your loved ones be able to survive financially? Would the mortgage get paid? Who would support your children? Who would pay for your funeral? A life insurance settlement can replace your income, help payoff debts, support surviving family members, pay for a child's education or even cover funeral costs. Life insurance doesn't eliminate the struggle all families deal with when someone passes away, but it helps financially care for your loved ones when you can't.
Repair Your Credit
Your credit score determines everything from whether you can get a car loan, qualify for a mortgage or rent an apartment, so make 2015 the year you get your credit in tip-top shape.
Healthy credit reports and scores can save you thousands in interest and improve your overall financial picture. Pull your free yearly credit reports from the major three credit bureaus at annualcreditreport.com so you know where you stand, and then make a plan for how you will improve in the coming year. It takes time to rebuild credit and there are many factors that go into your scores; here's a helpful guide on how to get started.
Rebalance Your Portfolio
If you ignored your investments and/or retirement accounts all year, then the very least you should do to make up for it is rebalance in beginning of the new year.
Your portfolio consists of weights in different asset classes and over the course of the year, the market value of each investment earned a different return, which shifted the weight. Rebalancing is essentially giving your portfolio a tune-up — you shift the weight to keep your risk low and maximize returns. The optimum balance in a portfolio is unique to each individual investor, and if you aren't comfortable analyzing your portfolio on your own, then consult an investment advisor for help.
Use Tax-Advantaged Accounts
If you aren't taking advantage of the many tax-advantaged accounts at your disposal, then you're missing out on big savings in 2015.
The most popular tax advantaged accounts include a 401(k), IRA and Health Savings Account. These accounts allow you to enjoy tax-deferred or tax-free growth of your money. Tax deferral leads to significant savings over time and in some cases, pre-tax contributions can lower your taxable income. Talk to your employer about starting contributions in 2015 (if you are self-employed, you still have plenty of tax-advantaged accounts to choose from).
Two Cents is a new blog from Lifehacker all about personal finance. Follow us on Twitter here.
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