A resolution is defined as a firm decision to do or not to do something, or the action of solving a problem, dispute, or contentious matter. One of the more popular New Year’s resolutions is to improve one’s financial well-being. This may be in the form of committing to saving more money, paying down debt, or finally starting to actively save for your retirement. It may prove difficult to do all of these things at the same time, so prioritize your financial goals for the new year.
- Save at least $1,000 in your savings account for emergencies and unexpected expenses.
- Pay off all your debts. Start with the loan or credit card with the lowest minimum payment and pay that off first. When that’s complete, use the money you were spending to pay down your first debt and apply it to paying down the debt with the next highest minimum payment. This is often referred to as the debt snowball.
- Save at least three months of funds to cover normal expenses in case you lose your job or are unable to work due to some other factor. This will help cover the loss of income when you are not employed or unable to work.
- Invest at least 15% of your pretax income into retirement savings.
- If you have children, begin investing for their college education.
- Pay off your mortgage.
- Continue to build wealth and give money away.
We can help you establish a savings plan, refinance your debt so that you can pay it down sooner, and even help you invest for your retirement. Contact us today at (800) 692-3274, visit your favorite branch location, or complete the form below to get started.