Happy New Year! Did you create any New
Year’s Resolutions? It’s not too late. Hopefully one of your resolutions was to
improve your finances. Finances are a
big part of your life. Finances can
destroy relationships; result in divorce, cause arguments, sadness, depression,
anxiety, fear and health issues. Finances have to be properly managed at all
times to ensure you are able to handle any ups and downs in life.
One key to improving your finances is to
set financial goals that you know you will be able to achieve. Make a promise to yourself that you will do
at least one thing to become better at managing your finances in 2017. Make sure your resolutions are positive
statements that are linked to a specific goal, i.e. I will pay off my Visa bill
(whatever that amount is) by March 2017 instead of an uncertain or negative
goal such as, I hope I can pay off my Visa bill by March 2017 or I will try to
pay off my Visa bill by March 2017.
If you stop following your new year
resolutions, don’t fret. Dust yourself off and get back on track. Remember you
have 364 more days to get it right. Take advantage of them. Here are 9 easy
ways to help you improve your finances in 2017.
Change
If what you did in 2016 did not work then stop doing it. Avoid
repeating the same mistakes. Do research or seek counsel to find a better way
to do things and achieve your goals. You deserve it!
Charges
Ghost charges. Review your monthly financial statements, credit card
statement and bank statements. Review every transaction. Look for recurring or
variable charges that you no longer use, need or want and cancel them. Ensure
that all charges are accurate. If not, contact the company immediately to
dispute the error.
Interest
Save on interest. Refinance your auto, home, student loans or other
loans to lower your monthly payments and interest rates and save money over a
period of time.
Budget
Create
a budget or spending plan and subtract your total monthly income (net) from
your total monthly expenses and bills. Track spending daily, weekly, bi-weekly
or monthly. Spend 70%, save 20%, donate 10% to charity.
Spending
Pay bills as soon as you get your paycheck. Pay bills
online, by phone (if there is no charge) or by postal mail.
Learn how to negotiate prices. Pay less for everything.
Learn the sales cycle for every store you shop. Ask the store manager when
items go on sale and the types of sales they offer. Sign up for text or email
alerts or connect on company social media sites.
Spend less than you earn. Reduce spending by 30%. Pay for most items
with cash. Buy more needs versus wants.
Income
Increase
your income by at least $3,000 by getting additional training or education,
getting a higher paying job or creating multiple streams of income.
Save
Automate savings. Open a savings account at a bank that is outside of
your neighborhood or away from your employer. Create a savings account to cover monthly
bills and expenses for 12-18 months. Look for online savings accounts that
offer higher interest rates at www.mybanktracker.com.
Invest
Do not depend on social security because it may not be enough to live
on during. Remember retirement is for one; do not depend on your spouse or
partner’s retirement to cover your retirement. Look for no load or
funds with low fees.
Save at least 20% of your monthly income towards retirement. Your retirement
account balance should equal at least 30 times your current salary. Maximize
contributions at least up to the percentage your employer matches. Make “catch
up” contributions if are 50 or older.
Credit/Debt
Pay down debt. Pay loans off prior to the end of the loan term.
Refinance loans to pay them off sooner. Pay more than the
minimum monthly payment on credit cards and loans.
Monitor your credit for free by ordering your credit reports
at least once a year at www.annualcreditreport.com
and increase your credit score by at least 15 points. Keep credit card
balances to 20% or less of the credit limit (pay off 80% of the balance).
Protect Assets
Get insured. Make sure you
have adequate health, auto, life, disability and long-term care insurance. Reevaluate
insurance policies yearly or when a big event occurs – marriage, childbirth,
death, illness, divorce, etc. Ensure you have adequate coverage.
Setup an estate plan no matter what your income to ease the burden of
handling your financial affairs when you die. Create a will and advanced
medical directive. Create a trust to reduce estate taxes and clearly identify
how, when, where and to whom you want your assets distributed.
No comments:
Post a Comment