2020 Financial Goals
What's a good financial resolution to make?
• Some of the most popular ones are pretty basic – save more, spend less or pay down debt!
• Small changes really add up over the long term. So, if you want to spend less, you may want to start tracking your spending. Keep a budget.
• Maybe you notice some bad spending habits are really costing you every month. Do you go out to eat too often over the lunch hour? Create better habits. Start packing your lunch at home and bringing it with you. Those small changes, over a year, can put a lot more money in your bank account.
2. How do we stick to it?
• It's important to set realistic goals. For instance, if you have $25,000 in student loan debt and you make $50,000 a year, it may not be realistic to set a goal of paying off all your debt this year. A more realistic goal would be looking at your budget and say allocating $200-300 a month to put towards it.
• On top of that, throw any other extra money you can towards it.
• Also, a great way to stick to your goals, is to automate what you can. If your goal is to save say $500 a month, then have that money automatically deposited from your paycheck into your savings account.
3. What are some other things we might be forgetting about when it comes to spending?
You are entitled to one free credit report a year so this may be a good time to request that and make sure there aren't any errors.
• Take inventory of all your subscriptions and memberships. Evaluate whether you're using the gym membership or if you really need Netflix, Hulu and Disney +? Are there areas where you can cut back and save more of your hard-earned money?
• Finally, one of the biggest mistakes I see clients make is not taking advantage of their company 401k matches. Be sure to try and contribute enough to meet the company match.
4. What are some tips as we look forward to the new year?
Start with looking back at how 2019 was – did you have a budget? Did it work? What expenses do you expect to have in the New Year?
• Review your financial goals for the year – review your retirement plans and see if adjustments could be made.
• You want to try and check your tax withholding to make sure you're on track.
• Consider working with a financial professional to help you decide what to do with your retirement and traditional savings.
Being Financially Fit This Year:
Make financial resolutions
Try small changes to spending
Cut back and save more
Check tax withholdings
Review retirement plans