Do you have a list of resolutions for the new year? According to Statista, saving more and spending less are the most common resolutions people revisit at the start of each year.

Reviewing your finances yearly is a common practice (and we fully encourage it), but it’s also important that you feel empowered to achieve your goals all year long. Whether you’re updating your New Year’s Resolutions or looking for a simple refresh in your finances, Elements is here to support you!

We’ve gathered some tips and tools to help you freshen up your finances and keep you on track to reach your goals with confidence.

Set Financial Goals

Having goals keeps us motivated and gives our lives direction. While the new year is a practical time for setting new expectations, you don’t need to wait until then to make changes.

Before making any financial decisions, it’s best to review your current situation, understand your money habits, and focus on setting goals around the things that matter most to you.

Are you an Elements member? The Online Banking & Mobile App has a built-in money management tool to help you stay on top of your financial goals. Get a quick overview of your spending, create budgets, manage debt, and much more with our Budgeting Tools. Learn more.

Kickstart Your Savings

Saving is a common financial goal and the foundation of any well-balanced budget. Before you start saving for big purchases or items on your wish list, it’s recommended that you first establish an emergency fund. Having at least three to five months of expenses saved can help you stay prepared for unexpected costs.

Here are some helpful tips to kickstart your savings:

• Always pay yourself first by setting up recurring transfers in online banking or by manually moving funds over on payday.
• Set spending limits on your checking account and set up alerts to remind you when you’ve reached that limit.
• Open separate savings accounts and label them with what you’re saving for (e.g., Emergency Fund, Vacation, New Car, etc.)
• Open a high-interest account to earn more for your money.

Ready to get started? Our credit union offers both High Interest Checking and High Yield Savings products that reward you. Explore our options and find the account that best suits your needs.

Understand Your Credit

Do you know where your credit stands?

• Above 740: Excellent
• 670-739: Good
• 580-669: Fair
• Below 579: Poor or No Credit Score

Your credit score plays a crucial role in your financial health and shows lenders that you're a responsible borrower. This boosts your chances of getting approved for auto loans, mortgages, and other types of credit.

Don’t forget! You can get free, 24/7 access to your credit score and full credit report through Elements Online Banking & Mobile App. Monitor your score daily and simulate different credit scenarios without negatively affecting your actual score. Learn more.

Manage Debt

Not all debt is the same. In fact, some forms of debt, like mortgages, build equity and can earn you more in the long run. However, carrying high-interest debt, such as credit cards, can harm your credit score and slow down your progress toward other financial goals.

Two methods of debt management that our experts talk about are: The Snowball and The Avalanche.

The Debt Snowball: With this method, you focus on the debt with the smallest balance first, while making minimum payments on all other debts. This way, you’ll cross one debt off the list by decreasing all other balances simultaneously. Once you tackle that smallest debt, move on to your second smallest, and so on.

The Debt Avalanche: This method pays off your highest interest rate first, then moves to your lowest interest rate. High-interest debt is usually the most expensive debt to carry, so getting rid of it early on can help save you money.

Ramp Up for Retirement

Retirement may be just a few years away for some, while for others, it’s many years ahead. No matter how close or far you are from retirement, it’s never too early to start investing in your future.

• Take advantage of your employer’s 401(k) match
• Increase your contributions as your pay increases
• Allocate funds from any tax refunds, inheritances, bonuses, or similar into a specific retirement savings account

At Elements, we recommend meeting with a financial advisor to guide you through the process. They can help you identify potential investment opportunities and create a plan to get you where you want to be.

Stay Empowered!

Elements is always here to guide and support you, no matter what stage you’re in. Whether you’re creating goals, adjusting your budget, or learning more about your habits, we want you to feel empowered while doing it.

Have questions or need personalized advice? Contact Elements Financial for support in all aspects of your financial life.