If you want this new year to be better for your bank account than the last year, give these ideas a try.
It’s time — time to make a bunch of resolutions that you’ll never keep. Actually, this year should be different, due to a number of unique financial situations coming up in 2018.
There was also enough financial activity in 2017 that you may have loose ends to tie up. If you want this new year to be better for your bank account than the last year, give these ideas a try.
Look at your identity theft vulnerability. Back in September, the country learned that Equifax, one of the nation’s largest credit bureaus, was hacked from mid-May up until July 29. Nothing to worry about — just about 145 million American consumers’ personal information was possibly lifted by online criminals. OK, there was a lot to worry about, and many consumers rushed to freeze their credit. But plenty didn’t. CompareCards.com conducted a survey of 1,000 American adults from September 22 to 25 and found that 76 percent of consumers didn’t plan to institute a credit freeze.
It’s easy to see why. People probably assume that since they haven’t been hit with identity theft yet, they won’t be later. That’s debatable, but if you thought at the time that you should do a credit freeze, you may want to finally get to that in 2018 — and ask yourself how well you’re protected in general against identity theft. Maybe it’s time to change a bank website login password or check your credit report to make sure there isn’t any incorrect or suspicious information on it.
(AP Photo/Mike Stewart, File)
AP Photo/Mike Stewart, File
Look for a new savings account — or open one. The Federal Reserve raised interest rates on Dec. 13 and plans to raise them three more times in 2018. What might this mean for savings accounts? Savings accounts that have for years offered rock-bottom interest rates (often 1 percent or less) will likely go up. But probably not too high up, according to most industry experts. Still, expect some online and community banks to entice new customers by offering interest rates that are well over 1 percent and perhaps, one can hope, reaching 2 percent. You should save money regardless — but this year, you may actually make money doing it.
(AP Photo/Jacquelyn Martin)
AP Photo/Jacquelyn Martin
Do your taxes early. That’s a good idea any year. But with the new Republican tax plan, it may be more confusing to taxpayers as they figure out what they can and can’t deduct, and set themselves up for the following tax year.
[See: 11 Ways to Save Time and Money.]
(WTOP/Neal Augenstein)
WTOP/Neal Augenstein
Start that college savings account. Do you have kids? Yes? Are you putting money away for college? No? What are you waiting for? The financial services firm Edward Jones conducted a survey from May 11 to 14 of 1,009 U.S. adults and found that seven out of 10 respondents didn’t know what a 529 plan is. In a nutshell, in case you’re one of those 7 out of 10 people, it’s an education savings plan run by your state (though you can use other state’s 529s), and they allow you to put money into them tax-free. If you need help finding a 529, you can compare plans at Savingforcollege.com.
(AP Photo/Seth Wenig, File)
AP Photo/Seth Wenig, File
Get control of your credit card debt. It’s a good idea for anyone to do, but young adults who frequently borrow money from their parents may really want to think about it. According to a recent Creditcards.com study that surveyed 1,092 adults with kids 18 and older, 74 percent of parents help their grown kids with finances. While that’s to be expected if your kid is still in college without a job, 70 percent of them said that they helped alleviate some of their kids’ debt. So whether you’re 19 and borrowing money from your parents, or 39, you should at least try to bring down your debt so you don’t have to rely on the “Bank of Mom and Dad.”
(AP Photo/Elise Amendola, File)
AP Photo/Elise Amendola, File
Cook more or learn to cook. Get to know your kitchen, and you’ll save money. According to the most recent Bureau of Labor Statistics numbers, the average household spends an average of $3,008 per year on eating at restaurants, fast food joints and the like. You’re going to spend less money the more you eat food from the supermarket, and it will be healthier for you, too.
(Thinkstock)
Thinkstock
Make some home improvements that save you money. Now, while you may argue that a new kitchen or backyard patio will add value to your home, that’s money you’ll make — someday. Instead, you could buy some energy-saving appliances that would eventually pay you back, once the monthly savings add up and overtake the initial cost. Energystar.gov has a lot of energy-saving appliances and home improvement ideas.
[See: 10 Money Leaks to Shut Down Now.]
(Courtesy of Formica Corporation via AP)
Courtesy of Formica Corporation via AP
Start planning for the worst. It may sound like negative thinking, but you don’t know how 2018 will turn out, and a little preparation could make a possible bad year better. The investment service company TD Ameritrade recently released the results from a survey of 2,019 American adults 37 and older that found 65 percent of them had no financial plan in place in the event of a divorce or losing a spouse. Really, that survey isn’t surprising at all. Many of us are buying a birthday or anniversary gift for our loved ones on the day of, and we’re expected to plan for something that may not happen, and that we don’t want to happen? Of course we aren’t planning for the worst. Still, it’s arguably a smart resolution.
(Thinkstock)
Thinkstock
Resolve to put money aside for next year’s holiday gifts. Varo Money, Inc., a mobile banking app, released the results of a New Year’s Resolutions Survey, conducted from November 23 to 26, of 1,005 U.S. adults, and found that 25 percent of respondents will be paying for their holiday gifts for the next six months. Maybe 2018 will be the year you finally break the cycle of holiday debt, and you open up an extra checking or savings account and start putting money into it every month, so you aren’t financially overwhelmed during the next holiday season.
(Thinkstock)
Thinkstock
Ask for that raise. Maybe you’ll get a salary bump without having to beg. According to research released in 2017 from Korn Ferry, a search and recruiting firm headquartered in Los Angeles, American employees can expect a 3 percent median base salary increase in 2018. Still, 3 percent isn’t exactly a king’s ransom, and it’s a healthy job market out there. If you feel like you’re worth more and that your employer likely wants you to stick around, and you can summon your confidence to have a talk with your boss, this may be your year.
[See: 10 Money-Saving Websites to Check Before Shopping.]
(Thinkstock)
