Financial New Year’s Resolutions
Build an emergency fund
The idea of an emergency fund is to keep it liquid. Start off with a small goal. Save enough to cover one month’s living expenses. Gradually increase your savings to reach three months, aiming ultimately for a total of six months' worth of savings.
Pay down debt
Begin by listing all your debts, including credit cards, student loans, car loans, and any other obligations. Take note of the interest rates, minimum payments, and total amounts due. Once you have a clear picture of your debt situation, you can choose a repayment strategy that works best for you.
Review your budget
The center of any budget is to know where your money is going. A budget is simply an estimation of your income and expenses over a set period of time. The process starts with figuring out your goals, noting your income and tracking your spending. You can easily find or create an online spreadsheet for free; some even have built-in calculators.
Open a retirement account
Everyone's retirement savings goal is different. It depends on what age you plan to retire, and the type of lifestyle you want to lead. If you’re employed, one thing you can do is take advantage of your company-sponsored retirement plan. Some companies will even offer contribution matching, which can double your investing power.
Start investing
Start early if you can, this gives your money the most time to grow. Invest for the long term, try to ignore the day to day activity of the stock market and stay focused on the long term.
Review beneficiary designations
If you have any account that requires a beneficiary, set a goal to review and update your information. This is particularly true when important life events happen, such as having a baby or adopting, or getting married or divorced.