Fabulous Financial Resolutions for 2017

                                 

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 New Years Resolutions Try Goals Instead

                                         

               

Everyone tries to make a New Year’s Resolution including myself. Somewhere around February we forget about that New Year’s Resolution and go back to whatever it was we were doing before the New Year. This year I am saying no to New Year’s Resolutions. This year I am creating a goals list of all the things I want to accomplish in 2016 with a target date and action steps for each. Your goals should include at a minimum health, finances, family, career, spirituality and relationships.

This year make a decision to make at least one permanent change to become better in one area of your life. The key is to keep moving forward and practice that habit every day. Don’t beat yourself up too much if you forget to practice your new habit. If you forget one day, don’t worry, tomorrow is available for you to get back on track. Don’t look at your goals as negative; view them as positive things to improve your life.

Ask friends or relatives to provide support and encouragement for your new goals. Purchase self-help motivation books or practice meditation or positive affirmations to help strengthen your confidence to ensure you achieve your goals.

Look at the big picture and how your goals will help you, your family or your overall life. Examine the long-terms benefits of your goals and focus on the benefits to increase your motivation. Ensure your thoughts, words, actions, beliefs and behaviors align with your goals.

Here are six effective financial goals to achieve in 2016:

1. Eliminate Debt. Pay down debt or totally eliminate debt. Keep credit card balances at 20% or less of the credit limit, below 10% is ideal. Pay more than the minimum monthly payment for credit cards and loans.
2. Plug holes. Shared rides, entertainment, eating out, buying items just because they are on sale, paying retail prices, monitoring services (credit score monitoring, etc.), expired policies and warranties, shopping, name brand items, etc.
3. Assess Insurance. Reevaluate insurance policies yearly or when a big event occurs – marriage, childbirth, death, illness, etc. Ensure you have adequate coverage.
4. Plan for Retirement. Contribute as much as possible to your retirement account. Look for no load or funds with low fees. Calculate the minimum amount required to save in your account by multiplying your salary by 30, i.e. $40,000 x 30 years = $1,200,000. You will need at least that much in your retirement account by your retirement age, i.e. 65.
5. Track Spending. Use tools to help track spending and increase cash flow such as PageOnce, Mint.com or mobile apps on your cell phone. Use online banking which categorizes spending and provides graphs.
6. Save. Automate savings. In addition to retirement, create an emergency savings account to cover monthly bills and expenses for 9-12 months.

Don’t make unrealistic goals, however believe in yourself and write down all of your dreams and goals. If you 

believe you can achieve a goal you will. The only thing stopping your from achieving your goal is you. Wishing you much success in 2016!

How to Create Your Financial Roadmap for 2014

                                                                            

Develop commitments for 2014 instead of making New Year’s resolutions. Many times resolutions are forgotten about after January 31^st.  By making commitments you will be more determined to achieve these goals because they will be things you want to achieve and need to achieve.  These commitment are things you can do throughout the year to improve your life.  

You can create one or more commitments you want to achieve for 2014.  Ideally try to create at least five commitments you plan to achieve in 2014.  You can meet all of your commitments by creating smaller goals for each commitment.  Once you achieve those, develop larger goals and develop a course of action to achieve them. Track your progress.  I develop a roadmap each year that is broken down into 6 month increments. I develop goals and a deadline for each goal.  Later I develop a course of action on how to achieve those goals. If I don’t meet a goal I just extend the deadline and add it to the next 6 month increment.

Make sure your commitments and goals are positive statements that will improve your life. A commitment should be similar to an affirmation, i.e. I will pay off my Visa bill by April 2014 instead of an uncertain or negative goal such as, and I hope I can pay off my Visa bill by April 2014.

One of the worst habits Americans have is getting into debt year after year.  Make 2014 your year to eliminate those bad spending habits and begin your path to financial freedom. Here are 12 Financial Commitments for 2014 that will improve your financial life, reduce stress, end fights regarding finances, and bring peace to your life.

1. Consult a professional.  Contact a financial advisor or financial planner to help you determine your financial goals, where you want to live, the age you want to retire and the lifestyle you would like to have when you retire.
2. Track. Track your spending for at least 14 days up to 30 days. Compare this with how much you earn, spend and owe.  Make adjustments the following month and rate yourself on the improvements you made. Continue to do this until you are able to effectively manage your finances. Pay with cash or your debit card instead of your credit card. 
3. Bundle products. If you have multiple insurance products with different companies contact each company and get a quote for bundling your products. 
4. Ask for discounts and specials. Companies always provide discounts or specials but do not always advertise them.  Every 3-6 months call each service provider and ask if they are offering any specials and what discounts they have available for the services you currently have.  Ask for competitor price matches.  
5. Trim Spending. Buy needs more often than wants. Find ways to reduce expenses to help pay down your debts. Reduce spending by 30%. 
6. Get insured. Make sure you have adequate health, auto, life, disability and long-term care insurance. Review policies and update your beneficiary information yearly. 
7. Withholdings. Review your withholding status. Adjust as needed based on life events (death, divorce, birth of a child, adoption, new job, reduced benefits, new business venture, etc.) 
8. Say no. Learn how to say no. Stop loaning money if you can’t afford. You cannot save the world. You must save yourself first. Even if you can afford it, the best way to help someone if to show them how to help themselves. Giving money only enables bad behavior.  
9. Mindset. When spending money think about how it will affect your financial goals, your future, your family. If you buy a new pair of shoes that costs $200 how will that affect your family budget next week. Do this every time you spend money. This will help you to see how your spending impacts others. 
10. Debt. Pay down debt. Get current on any late payments. Negotiate with creditors to setup or settle accounts. Pay more than the minimum monthly payment to pay down debt faster.  
11. Risks. Avoid risky financial products such as payday loans, cash advances, advance credit or other risky financial products. These products cause you to owe more money than you originally did and make your financial situation worse. 
12. Credit History. Order a copy of your credit report to check for any errors and unknown accounts that you owe. Fix any errors and setup payment plans for past due accounts.