New Year’s resolutions often include at least one financial goal. Even if yours don’t, we all agree that we would like to make this year a better financial year than last year, but what are the first steps to do that? Here are five ways to start this New Year off right!

Review your Subscriptions

Most households used to have a subscription to the local newspaper and a couple of magazines. Subscribers wrote a check for them or paid cash. While newspapers and magazines are much less common today, we have subscriptions for many more things than we did back then. Video streaming, shopping delivery, music providers, weather services, news feeds, exercise tracking apps, even golf apps have a subscription! Payment for all of these subscriptions has become seamless. You give your card number once and you are set for years of enjoyment. What happens when you don’t have time for golf for a while? Or you are working on your debt plan and don’t do much shopping for a time. Those subscriptions just keep on keeping on, and so do the charges.

Sit down with your bank statements and credit card bills for the last 3-6 months and scan through the charges looking for those things you don’t need, use, or want any more, but haven’t taken the time to cancel. Most families will find at least $20-30 per month of unwanted subscriptions, and some even more. It’s not uncommon to find $500-$1000/year that can be freed up just by taking 20-30 minutes to complete this exercise.

Get New Quotes on Auto and Home Insurance

Auto and home insurance are an important part of your financial plan, but they are also a big expense. To make sure you are getting the best value you need to shop around every 2-3 years. Many insurance companies offer a low “introductory rate” designed to bring you in as a new customer and over the years they slowly (or not so slowly) bring the rates up. It’s the reason the gecko company can save you 15% in 15 minutes. I recommend shopping several different carriers or using a independent agent who can shop multiple carriers for you. To make this as easy as possible, make a list or chart of the things the agent will need to give you a quote. For auto, that would include drivers license numbers and birthdates for all licensed drivers in your household, how far they each commute to school and/or work and VIN#’s for each of the cars you want to insure. For home owners you will of course need your home’s address, but often information about alarms (smoke and security), number and type of fireplaces, and exterior features such as pools and trampolines are needed to get a quote. Getting multiple quotes can be a bit time consuming, but in the end it can pay off with hundreds of dollars in savings per year.

Adjust your spending plan (budget) (or start one!)

Many people have a negative initial reaction to the word budget. The first images that come to mind are restrictions and sitting at home hungry and bored because you can’t spend any money on the things that you think make your life more enjoyable! Luckily none of this is true. Viewing your budget as a spending plan actually gives you the freedom to spend your money where and when you plan to without guilt or fear.

The New Year is a great time to review your spending plan (see how that sounds better already?) to make sure that it is still aligned with your goals. Spending your money intentionally will help keep you from wondering where it went and ensure you have some set aside for things you want or need later in the year. If you are not yet on a spending plan, the New Year is a great time to get started. There are several simple (and free) apps to help you begin to plan your spending. Every Dollar (www.everydollar.com) is the one we use and recommend to our clients. It will not only help you tell every dollar what to do, but will allow you to set aside money for the things that are most important to you.

Get some coaching!

Finally, if the above list is a bit overwhelming, it’s OK! You don’t have to walk this path alone. A good financial coach can help work through these steps and more with you to make sure you are on the path you want to be on financially. Regardless of whether you have a little money or a lot of money, everyone can use some help in deciding steps to take to keep your financial train humming along the tracks toward your goals. To read more about the benefits of financial coaching click here to read our previous article on coaches vs advisors. To find out more about MoneySense Coaching and how we can assist you on your journey visit our website at www.moneysensecoaching.com.