New Year’s Resolutions for a Financially Successful 2020

0
727

It’s just about resolution time. A time to reflect on the last year and make plans to be a better version of yourself for the upcoming one. While you’re starting to think about areas you could improve upon, remember that your goals should be attainable. The key is sticking to your resolutions, whatever they may be. Here are 3 financial resolutions that will help you trim the fat and make 2020 a fiscally successful year.

Create A Life Budget

Build a financial road map with help from your fiduciary advisor in Orlando. Structure your needs and wants, and balance what comes in with the money that must go out. If you’re unsure where your money is going, track your spending habits for a month. Consider this budget break down an average, and plan accordingly. 

Once you’ve accounted for your fixed monthly expenses, calculate what you should be saving for retirement, which is about 10-15% of your pretax income. Additionally, calculate your own net worth by compiling a list of assets and subtracting liabilities. This should be done on an annual basis, and don’t worry if there’s fluctuation year to year. Lastly, prepare for larger ticket expenditures and emergencies. If paying for a college tuition is in your near future, keep some of your funds relatively liquid. It is also recommended to keep 3-6 months of money saved in case an emergency occurs.

Handle Debt

Debt is not necessarily a bad thing, although it can be if you incur too much of it. It is important not to confuse the amount you’re approved to borrow with the amount you should borrow. Total monthly debt payments including mortgage and credit cards, should be less than 36% of your pre-tax income.

When it comes to credit card, and other non-deductible consumer debt, try to pay it off, and in general avoid borrowing, whenever possible, to buy assets that depreciate. Consumer debt is a necessary tool for most of us to survive, but it adds up very quickly and can be dangerous if you continually carry a balance.

Prepare for Things Unexpected 

It may seem like a tall task, but it isn’t impossible. Risk is a large part of life, especially when dealing in investments and financial inclusion. But your life, financially and otherwise can be greatly affected by any sort of surprise. A medical emergency, loss of job, or natural disaster. You need to have some sort of emergency fund in case tragedy strikes, and if you haven’t built up enough assets to self insure, make it a point to have your insurance needs covered this year. It may seem like a tall task, but it isn’t impossible. Risk is a large part of life, especially when dealing in investments and finance. But your life, financially and otherwise can be greatly affected by any sort of surprise. A medical emergency, loss of job, or natural disaster. You need to have some sort of emergency fund in case tragedy strikes, and if you haven’t built up enough assets to self insure, make it a point to have your insurance needs covered this year.

Make sure to speak to your financial advisor about the most efficient, and tailor made way you can save, or at least keep liquid 3 to 6 months of essential living expenses as an emergency fund.

There’s quite a lot you can do to improve your financial health, but remember it does not have to be done all at once. Map out a plan and strategize to ensure your goals are achievable and that you make real financial progress this year.

Comments are closed.