The year is coming to a close, and with a new start on the horizon, it's the perfect time to start thinking of things you can work on next year. Instead of focusing only on fitness or eating habits as a resolution, however, Cambridge has come up with 10 financial resolutions for the New Year that will help you revamp your financial lifestyle! Here is the first half of those resolutions in "New Year's Financial Resolutions - Part 1."


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Hi, I’m Carly Cherry with Cambridge Credit Counseling and welcome to Personal Finance 120 – information for managing your financial life in about 2 minutes. Every New Years, millions of people focus their attention on promising to eat healthier or exercise more, but why not also take some time to focus on getting your finances on track? Here are 5 Financial Resolutions you could consider adopting in the New Year.

(On-Screen Graphic: Educate Yourself) It’s difficult to improve your financial situation if you’re unsure how finance actually works. Take advantage of educational workshops, do some research online, or talk to a professional, one-on-one. Whatever method you choose, you’ll be better off. On Cambridge’s education page, (On-Screen Graphic: www.cambridge-credit.org/goodpayer) you’ll find our Learn Now or Pay Later Financial Wellness Guide, which can help you get started.

(On-Screen Graphic: Journalize Your Spending Habits) If you’re concerned about where your money’s going, we suggest journalizing your spending habits for a few months. That means carefully noting how much you spend on bills, daily expenses, groceries, coffee - everything. This will help you identify your true spending priorities and make any appropriate adjustments.

(On-Screen Graphic: Create a Budget) Preparing an accurate working budget will help you avoid bad spending decisions and, more important, build savings. After all, everyone needs an emergency fund worth 4 to 5 months’ worth of expenses and a retirement plan. When you have a moment, check out our article on (On-Screen Graphic: www.cambridgecredit.org/goodpayer Search for: Creating a Budget) “Creating a Budget” for more information on how to establish an effective spending and savings plan.

(On-Screen Graphic: Shop Smarter) This year, make a commitment to take advantage of coupons and sales as often as you can. Be careful, though, as some sales are only meant to trick you into spending more than you really want to. And while you’re grocery shopping, try a few generic brands whenever possible. You may be as pleasantly surprised by the quality as by how much you’re saving.

(On-Screen Graphic: Curb Bad Habits and Unnecessary Spending) Quitting smoking and losing weight are two of the most popular resolutions made every New Years, and for people who achieve either of these goals, in addition to the obvious health benefits, they generally discover that they’ve reduced their spending at the same time. According to tobaccofreekids.org, depending on the state, the average American adult saves between $1,000 and $3,500 by quitting smoking altogether. If weight loss is your goal, depending on the amount of weight you lose, you could potentially lower your insurance premiums, require fewer medications, and miss fewer work days.

That’s all we have for today. I hope you’ll join me next week for the second half of our two-part New Year’s series, when we’ll look at some other money-saving resolutions. Until next time, I’m Carly Cherry for Cambridge Credit Counseling.