The new year is here and we are all trying to stick to those resolutions we set on December 31st. Every day is a chance to set new goals and start living the life you want to live. There are so many important resolutions to set for yourself but possibly none more important than goals to improve your financial health. Here are four of the most important financial goals that you need to start getting after today!

_1. Create a Budget

To solve a problem, we need to know what the problem is. Not making enough money, living paycheck-to-paycheck, or not having money in savings is A problem, but not THE problem.

• 63% of Americans are living paycheck-to-paycheck, according to CNBC.
• 47% of respondents to a Federal Reserve Board survey said they could not come up with $400 in the event of an emergency, according to The Atlantic.
• 1 in 3 adults have trouble paying monthly expenses, according to NPR.org.

Of course, we feel like all our problems would be solved if we just made more money. Take it from the many lottery winners, professional sports stars, or popular musicians who go broke after making millions; more money is not always the silver bullet solution. Mastering the art of managing money starts with taking control and creating an honest budget.

Of course, we have an app on our phone making it easy to see how much money is left until payday. It also takes too long to create a budget when the bank tracks your spending, right?

Not so fast!

There are road signs between Los Angeles and New York that tell you where you are and the miles until the next town; but would you begin that road trip without putting the destination into your GPS?

Maintaining an honest budget is just as important as mapping a road trip. The GPS allows you to see the destination, the remaining miles, and all the stops along the way.

Learn the basics of creating a budget with 5 Steps to Control Your Spending.

_2. Get out of Debt

Starting the journey with my wife over 13 years ago was one of the most exciting experiences of my life. We drove off in a U-haul, having combined all our belongings.

When we finally moved into our little two-bedroom apartment we realized we not only combined our furniture, our incomes, and our hearts; we combined over $50,000 in credit card debt.

One of the worst four letter words in the English language…Debt. (I probably got that from Dave Ramsey because my brain is saying it in his voice)

I believe this situation is more common than bad drivers in (insert your town here)! The problem was that we did not realize this was a problem.

The problem was that we did not have any money in savings. We did not have any money left at the end of the month. Sometimes we worried how we would take care of our daughter.

Being crushed under the weight of enormous debt should be enough for anyone to do what ever it takes to climb out from under that rock. What most people do not see is the actual cost of their debt.

I am not only talking about the interest payments but the opportunity, time, and quality of life that is never realized because they are stuck under that heavy rock, in a dark hole, making minimum payments on stuff they bought two years prior.

I believe this is the second most important financial decision you will ever make. Second only to creating a budget because the budget is the blueprint for destroying that debt mountain.

Take the amount of money you spend on credit card and car payments every month and multiply it by 12 months. Now take a deep breath and imagine the first three things you would do with that extra money after one year?

_3. Buy a House

The most valuable asset you will ever own is a piece of real estate; a place to call home.

Real estate is the best way to provide safety and security for your family, and grow your nest egg.

Most millionaires own real estate but owning real estate does not guarantee that you will be a millionaire.

Be confident that your home will appreciate, making your nest egg worth more as you pay down the mortgage. Watching the equity grow in my properties makes me sleep better at night.

Buying a house does not have to be a scary transaction. The first and most important step is having your budget and sticking to it. This way you know what you can comfortably afford to pay every month.

Next you want to find a trusted Realtor to guide you and answer all your questions. A good Realtor will help alleviate the fear of such a major investment.

_4. Save for Retirement

Why do people wait so long to think about retirement?

According to a Northwestern Mutual Planning & Progress Study from 2019, 22% of Americans have less than $5,000 and 15% do not have one penny saved in a retirement account, .

By starting early, retirement savings can grow exponentially by taking advantage of compound interest.

The most famous example is Warren Buffett, who made most of his fortune through compounding after his 60th birthday. This is important because Buffett started saving and investing when he was in grade school.

Ignore the fact that he is a billionaire and consider that 95.5% of Buffett’s entire net worth was generated after he turned 60.

What if he would have waited until he was 31 to start instead of 11?

The most important thing is not the amount you put away, but that you put something away for retirement.