New year's resolutions to help your financial health
80% of people stop their new year's resolutions stop by Feb. 1
Many people make similar resolutions every year: to lose weight, go to the gym, try something new. But what about financial goals?
Higher Minds co-founder Noah Berman joined FBN:am on New Year's Eve to share some financial resolutions everyone should make.
1. Improve your credit score
Are you checking your credit report at least once a year?
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By law, every American is entitled to receive a free copy of their credit report every 12 months. Experts say pulling your credit report will alert you to surprises, such as a new card being issued.
2. Reduce debt
Not all debt is equal.
Experts say consumers should pay off credit cards first because interest rates on those are generally higher than other debt. Review all your credit cards with outstanding balances and make note of the balance due and interest rate.
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People should also consider taking advantage of credit card promotional offers by transferring high balances to lower interest rate cards.
3. Spend less, save more
When establishing an emergency fund, it’s important to identify your risks.
An emergency fund should be liquid with little to no market risk, such as a high-yielding savings account or an ultra-short-term bond fund.
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Establishing automatic transfers -- either directly from your paycheck or from your bank account -- creates discipline and eliminates decision-making or forgetfulness.
4. Budget better
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Overspending can easily derail any budgeting plan.
Experts say categorizing your spending and tracking your budget can help keep you on the right path. If you need help, try using online tools.
5. Invest in the market
Money Map Press chief investment strategist Keith Fitz-Gerald recommended keeping your money in the stock market instead of pulling it out for fear of increased risk as you age.
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“If you're 60, you're active, you have a reasonable probability of living, I think most investors could double the amount of money they've got in the stock market and still not have enough upside," Fitz-Gerald told FOX Business.
Berman also recommended people analyze their gym memberships, as oftentimes, the memberships skyrocket if you join in the month of January.
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"People are more interested in improving their health and losing weight than they are in actually saving money," Berman said.
He said 80 percent of new year's resolutions stop happening by Feb. 1.
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FOX Business' Linda Bell contributed to this report.