If you have made New Year's resolutions in the past only to forget about them by February, chances are they weren't specific enough to create a road map for the year ahead. In this season of self-reflection, use year-end credit summaries and bank statements to find out where you can make the most difference in your money management strategies.

Keep reading for money management resolutions you can measure and hold yourself accountable to.

Build a Budget Using the 50/30/20 Method

This divides your income and spending habits into categories for wants and needs. It also allows you to stash away a decent amount of money for your nest egg.

• 50% of the money you bring home (after-tax) goes to fixed expenses such as housing, groceries, utilities and car-related expenses.
• 30% goes to wants such as eating out, going on vacation, and donating to charities.
• 20% goes to savings goals, such as creating an emergency fund, or investing in your retirement.

Additional Tips to Manage Your Money

Setting up a budget changes the way you perceive the value of money and, hopefully, changes your spending habits. Here are some additional ways that you can reinforce this new-found perspective and watch as your savings grow and debt dwindles.

• Pay Yourself First. Figure out how much you bring home after taxes. Add up your expenses from your budget and subtract that amount from your take-home pay. This is your disposable income. How you spend it determines whether you will meet your financial goals for the new year. Additionally, this allows you to prioritize savings from the beginning.
• Increase Your Income. If you don't have enough money to cover your savings goal, consider ways that you can increase your income. This is where your determination comes into play. You can start by looking for higher paying jobs, taking on part-time work such as ridesharing or grocery delivery services, or saving money to go back to school in a higher paying field.
• Decrease Your Debt. You can break down the 50/30/20 methodology even further if you carry a balance on any of your credit cards at the end of the month. Since fixed expenses aren’t negotiable, you will have to sacrifice some of your wants or cut into your savings goals to pay down your debt.
• Avoid Incurring New Debt. To break the cycle of growing debt, pay cash or go without whenever possible. Devote as much of your budget as possible to paying off your credit cards so you can focus on your savings goals.

Next, learn how to use the tools associated with your Border Bank accounts to support your money management resolutions.

Border Bank Tools for Savings and Managing Your Wealth

Automate your savings and bill pay to build structure around your money management. Here are a few Border Bank tools that can help you finally achieve your New Year’s resolutions:

• Open a separate savings account for your emergency fund. Start modestly with a $1,000 savings goal. Ideally, you can increase that to 3 to 6 months’ worth of expenses. Once you have reached your emergency fund goals, you can put more money into your retirement fund.
• Set up an automatic transfer into your savings account(s) to simplify your money management goals.
• Automatic Bill Pay. It’s easy to set up automatic bill pay for household expenses using the built-in tools that come with your Border Bank checking account.

For more ideas on using Border Bank checking or savings accounts to fulfill your New Year’s resolutions, browse around our site. Contact Border Bank with any questions you may have.

"Though no one can go back and make a brand-new start, anyone can start from now and make a brand-new ending." - Carl Bard