The start of a new year is the perfect opportunity to set goals and create habits that can help lead you to reaching your financial goals. Small changes can lead to big results, especially when it comes to managing your money. With the right strategies and a little discipline, you can turn your financial resolutions into lasting achievements. Our financial experts have outlined five practical New Year’s resolutions to help you save more, spend wisely, and plan for the future.

 

Build an Emergency Fund

What Is It: An emergency fund is a savings cushion that helps you cover unexpected expenses, like medical bills, car repairs, or job loss, without going into debt.

How to Start It:

• Start small, achievable savings goals. While the ultimate aim might be three to six months’ worth of living expenses, begin by setting a manageable target, such as saving $500 to $1,000 within the first three months.
• Automate your savings. Set up automatic transfers to a dedicated savings account each payday. This way you can save without knowing you’re doing it!
• Take a look at all of your recent transactions and cut back on non-essential spending. Use the extra funds to grow your emergency fund faster.

 

Create a Budget That Works

What Is It: A budget is a plan for how you’ll allocate your income toward savings, expenses, and goals. Ultimately, it is the most effective way to visualize your spending and find areas to spend more wisely.

How to Start It:

• Track your spending. Use your Lake Ridge Bank mobile app or other tools to monitor where your money goes each month.
• Prioritize your goals. Set limits on discretionary spending to free up funds for saving or investing.
• Review regularly. Adjust your budget as your income, expenses, or goals change.

 

Pay Off High-Interest Debt

What Is It: Debt with high interest rates, like credit card balances, can quickly drain your finances. Paying it off frees up money for other goals.

How to Start It:

• List your debts, including the amounts owed, interest rates, and repayment terms. This will give you a clear overview of your financial obligations.
• Focus on the highest rates first. Use the avalanche method to target debts with the highest interest. Pay those off first, while making minimum payments on the rest.
• Make extra payments. Any additional funds – like tax refunds or bonuses – can go toward reducing your balances.
• Explore consolidation options. A personal loan or balance transfer could help you save on interest.

 

Save for Big Goals

What Is It: Whether it’s a dream vacation, a new car, or a down payment on a home, setting aside money for major expenses helps you avoid financial strain later.

How to Start It:

• Define your goal. Be specific about the amount and timeline.
• Open a separate account. Keep your savings for big goals separate from your everyday funds.
• Celebrate milestones. Reward yourself for hitting savings targets along the way. (Remember though, keep it within budget.)

 

Plan for the Future

What Is It: Long-term financial planning, like retirement savings or education funds, ensures your future is secure.

How to Start It:

• Maximize employer contributions. Take full advantage of matching contributions to retirement plans.
• Start early. The sooner you invest, the more time your money has to grow.
• Seek professional advice. Work with a financial advisor to develop a customized plan.

 

Take Charge of Your Finances This Year

Achieving your financial goals starts with a plan – and Lake Ridge Bank is here to help you every step of the way. From savings accounts tailored to your needs to expert advice designed to guide you through life’s financial milestones, we have the tools and resources to support your journey toward success. Our team is committed to providing personalized solutions that align with your goals and circumstances, making it easier than ever to take control of your finances. 

Let’s make 2025 the year we reach our financial goals together. Whether you’re saving for a dream, planning for the unexpected, or simply looking to make smarter financial decisions, we’re here to help you turn resolutions into reality. For more tips, tailored advice, and personalized solutions, speak with one of our expert bankers today.