It’s a new year and that means many people are setting goals and resolutions for 2018, hoping to start fresh. One of the best things you can do is to make some financial resolutions for 2018.
Talking about money – saving it, spending it, budgeting it – isn’t always an easy conversation. But setting financial resolutions should be an annual goal for every household. Whether you struggle to pay your bills or live a comfortable life, you should always keep track of your money and set goals annually.
Financial resolutions are one of the best things you can do to maintain or improve your situation so here are our best tips. Read on:
Save, save, save
Yes, we know this one isn’t easy – or popular. But setting financial resolutions should always include a goal for savings. We think you should aim to save 20% of your net income. So, what is net income? It’s the money that you have left after all deductions are removed from your pay, like taxes, contributions and garnishments. A part of your deductions should be a contribution to your retirement. We recommend saving for retirement as early as possible.
It can be difficult to adjust your lifestyle to save more, but it will pay off. And don’t beat yourself up if life happens and you can’t save as much one month. Just restart saving next month.
Monitor your credit reports
Make sure you are in good standing with the different credit report agencies and monitor the activity, making sure there’s no fraud.
Pay your bills immediately
This is a good habit to start in 2018 if you do not already do this. Right after you get paid, make sure all your bills are paid before you buy any extras. Stick to your budget and really drill down on the difference between “wants” and “needs.” Need help with budgeting? Try an app for your smartphone.
Pay off debt
Make 2018 the year you work to trim your debt – aggressively. When setting financial resolutions, paying off debt should be on your list annually. The quicker you get out of debt, the better your financial outlook will be. Bonus? You can save more for retirement!
Yes, we know this one isn’t fun. But spending less can really pay off in the long run by allowing you to save more, pay off your debt faster and set aggressive financial goals that will benefit you in the years to come.
Consider a “no spend” month where all you buy are necessities like food, gas and paying your mortgage. Skip the trip to Target and go for a brisk walk instead. Make a list and stick to it at Costco.
Mina Nami Khorrami LLC
The legal experts at Mina Nami Khorrami LLC wish you and your family a happy, healthy and financially sound 2018!