1. Ditch Your Debit Card

It seems counterintuitive, but when you’re paying with plastic, credit cards are the way to go. At least that’s if you have the willpower to charge only what you can afford to pay off each month. Credit cards offer more consumer protections — from extended warranties on purchases to zero liability on unauthorized charges — than debit cards. If you can’t be trusted to bring the balance back to zero on a monthly basis, at least pick up a pen to sign for your debit card purchases instead of entering your personal identification number. You’ll gain a few more protections and earn double the rewards.

2. Boost the Earning Power of Your Checking and Savings Accounts

It may seem like small potatoes, but you can beef up your checking and savings accounts by seeking out the best interest rates available and avoiding the nasty bank fees that can quickly drain your balance. Here’s how to bolster your banking returns.

3. Don’t Forget to Save For Retirement

If you aren’t getting the full company match for your 401(k), then you’re giving up free money. (Go ahead, scoff, but 20% of workers don’t contribute enough to do so, according to Hewitt Associates.) Not only will increasing your contributions make a significant difference in your retirement savings, but you can do so without noticeably depleting your paycheck.

4. Pick the Best Credit Card

A low interest rate is the obvious must-have, but it’s also worth looking for a credit card that offers other benefits you might use. A good rewards program and cardholder perks can make a world of difference.

SmartMoney.com New Year’s Resolutions

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