You want to start fresh as 2016 begins, and this means making changes to your life that will gradually improve your financial situation as the year goes on. Taking action is not always easy. Here are some tips for improving your financial health in 2016.

Increase Your Savings

The first step is to find ways to build your savings during 2016. Your goal should be to increase the amount you contribute to your savings account by 15 percent over the course of the year. You can do this by cutting back on spending, cancelling unnecessary services or increasing your income a little. The extra savings will help to make you more financially healthy while also protecting you against unforeseen expenses in the future.

Focus on Eliminating Old Debts

You want to focus on eliminating old debts in 2016. Try to pay down the oldest debts or the debts with the highest interest rates first. Specifically put money aside just for debts each month. This is going to help improve your credit score. It will also eventually give you complete financial freedom once everything is paid down. Be careful not to take on new debts during the year.

Stick to a Realistic Budget

You want to stick to a realistic budget during 2016. Have a budget in place that clearly defines the maximum amount you should spend each day or week. Do not go over that amount. Carrying cash helps prevent impulse purchases. Sticking to a realistic budget will help you control every aspect of your finances and avoid overspending on unnecessary things.

Reassess Your Accounts and Credit Cards

Take some time in the beginning of of 2016 to reassess your accounts and credit cards. Look at your bank accounts to make sure they are still helping you meet your financial goals, then do the same for your credit cards and retirement accounts. Switch accounts or negotiate new terms if things no longer seem helpful. This will allow you to start 2016 on good financial footing.