Each year, at the beginning of the year, many of us make a pact with ourselves to be better or different in some way; cut out junk food, go to the gym, stop smoking, etc. We want to help you transfer that energy into financial success in the year to come. The new year is a great time to reevaluate your financial situation. We are not talking about simply committing to cutting one thing or another out of the budget but instead using the season and beginning of the calendar year to recharge your savings strategy.

Spending is Out, Saving is In

The holidays are usually cash outflows for households, meaning the new year is an opportune time to review the balance sheet. If you accumulated debt buying gifts, creating a payoff plan as a new year’s resolution will help you stick to it. Even if New Year’s resolutions are not your cup of tea, a savings plan that begins in January makes sense. Spending is often down these months, with more discounts on everything from groceries to automobiles and fewer opportunities like parties and vacations to spend on.

Align Calendar Year with Budget Plan

If you typically have cyclical income and expenses, the new year is a great time to start a new budget. Why? The end of the previous year is often when you get a raise and summer is far enough away to save for your next big expenditure, like a vacation. Furthermore, big expenses such as a wedding or college tuition rarely happen in the spring. In short, start a new budget at the start of the year.

Look to Your Credit Union for Tools and Assistance

Whether you’re saving or borrowing, your credit union has products to help. If you are looking for inexpensive ways to pay off high interest credit cards, look for a promotional balance transfer offer like this one from Credit Union of Denver. By curbing the amount you pay for interest, your monthly payments cut down the card balance significantly faster. Alternatively, if you own a home, investigate tapping into the equity you’ve accumulated with a HELOC. HELOCs typically have a much lower interest rate than other forms of debt.

If your resolution is to save more, look at your financial institution’s certificate options. Rates have increased recently to entice members to save. These lock your money up for set terms, ranging from a couple months to many years. Opening one at the beginning of the year while you’re establishing new year’s goals means you can plan for expenditures or simply set them to mature annually, allowing you to reevaluate for next year’s resolutions.