It’s that time of year again for New Year’s Resolutions! Have you focused on setting resolutions for your financial well-being? Ashley Costello, CFP®, with NCA Financial Planners
4 easy tips to kick start 2021 with good financial health.
1. Get organized – holiday shopping is over and account balances and credit card statements are coming in, now is a good time to review what your financial net worth looks like. Total up all of your financial assets such as retirement accounts, brokerage accounts, bank accounts which are your liquid assets and then total up your debt from loans including mortgages, cars, credit cards, these are your liabilities. Subtract your liabilities from your assets and that will give you a snapshot of finances.
2. Set goals – Start off short term, easy, and attainable. If you get off track don’t get discouraged, get back on! An example: maybe while reviewing the snapshot it is noticed there more debt than comfortable with, a goal may be is to have 50% of that debt 50% paid off by June or all of it paid off by this time next year if things come up.
3. Budget – review how much money you have coming and what you have going out. Then dig deeper into what you have going out – what are fixed expenses that are set and variable expense change up frequently and up to what range. Start monitoring your budget on a monthly basis so that you have a more control and a better understanding of your finances.
4. Save – after monitoring your budget and having goals set is there wiggle room to save somewhere, anywhere? Whether it be in a 401k or building up emergency funds it adds up over time and interest compounds if those funds are invested!
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