End of Year Financial Advice

A new year will arrive soon.  Many people have made a list of New Year’s Resolutions. Be sure to include finances on your list even if you are good with managing your money.  Finances are a huge component of your life. Finances can destroy relationships; result in divorce, arguments, and depression, anxiety, fear, and health issues.

Make a promise to yourself that you will do at least one thing to become better at managing your finances. Set at least one financial goal. A financial goal should be realistic and should be affirming, i.e. I will pay off my Visa bill by March 2019 instead of, I hope I can pay off my Visa bill by March 2019. Here are 8 easy ways to help you improve your finances in 2019.

DEVELOP A PLAN (BUDGET)

Write a list of your total monthly expenses including debt and write down your total monthly income after taxes. If you do not have any money left over, (at least 10% of your monthly income) looks at areas where you can reduce spending.

SPEND LESS

Reduce spending by 30-50% and use the extra money to contribute to a savings account and pay off debt.

PAY WITH CASH

Pay for purchases with cash to save money and avoid paying finance charges.

PLAN FOR THE UNEXPECTED

Create an emergency savings account to cover all of your monthly bills and expenses for 9-12 months.

PAY OFF DEBT

Get current on any late payments and pay off debt as soon as possible, which will increase your credit scores.

ASSESS COVERAGE NEEDS

Determine your needs for insurance such as life, health, auto, homeowner’s/renter’s, disability and long-term care to ensure you have adequate coverage.

PERFORM ESTATE PLANNING

Create a will, advanced medical directive and trust to ensure your children and/or other family members know your wishes for distribution of your assets.

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.



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