With January quickly approaching the inevitable New Year’s resolutions aren’t far behind.
A new year means a new start to whatever you want to change in your life. Your finances are a great place to start making positive changes.
Here are seven money resolutions to start 2018 to get you closer to your financial goals:
Not all debt is created equal. While a mortgage is a good debt, credits cards are the worst type of debt. The average American household has $16,883 of credit card debt!
With interest rates between 10-25% credit card debt makes it nearly impossible to save for your financial goals.
Make it a huge priority in 2018 to get ahead of your debt and create a plan to eliminate it as soon as possible. Once eliminated, start budgeting to make sure it doesn’t happen again in the future.
Have you ever accidentally forgotten to pay a utility bill or even worse, a credit card bill? These can have serious consequences and wreck your credit.
One of the easiest money resolutions for 2018 is to automate everything. Thanks to online bill pay you can automate:
Automation is great for paying your bills but even better for helping save for your retirement. Automate each paycheck to contribute a percentage into your 401K, IRA, and savings. This will eliminate having to use willpower each paycheck and ensure you are always paying yourself first.
As billionaire investor Warren Buffet said, “Do not save what is left after spending, but spend what is left after saving.”
Paying yourself first means you are setting money aside to reach your financial goals. Once you pay yourself then you take care of everything else. Some examples of paying yourself first could be:
When it comes to saving money, not all accounts are created equal. No matter what age, you should make saving for retirement a top priority.
The easiest way is to enroll in your employer’s 401K so a portion of each paycheck is automatically contributed to your retirement. Even if you can only contribute 1% of your salary, it is better than nothing. The earlier and more you contribute, the more you will be rewarded in the future thanks to compound interest.
Also, if your employer offers a match for your 401K try to contribute the minimum matching amount as it is basically “free money” for your future.
Earning money is important, but if you spend it all you are living paycheck to paycheck. Instead of just earning, you should focus on your overall net worth by tracking it monthly in 2018.
It’s never been easier to track to your net worth thanks to free programs like Personal Capital. Once you enter your information you can view all of your assets, liabilities and total net worth. The best part? It only takes 5-10 minutes to set up.
Create a recurring calendar reminder each month to review your net worth and evaluate your finances. This is an easy way to spot your investments that are working and find out where you might be overspending.
We’re here to help. At Bayntree Wealth Advisors we help clients achieve financial security through strategies that seek to maximise the growth and preservation of wealth.
We offer services to help you build a blueprint for retirement success and our team will help you stay on track and make sure you are getting closer to your financial goals in 2018.
If you’re interested in talking with a Bayntree financial advisor, we invite you to request a call.