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!