10 Financial Resolutions for 2020
(10 Powerful Financial Planning Goals)
- Make a Monthly Budget and Stick to It. A budget may sound painful and restrictive, but it’s quite freeing after you’re all set up. Track your expenses for the next two months. Don’t aim for perfection. Just do it!
- Create Emergency Savings. Life is full of unexpected emergencies – it’s a “when,” not an “if” – so some extra cash is vital when a severe illness, job loss, home repair, etc. hits. If possible, set aside 3 – 6 months of expenses in a safe place, like a savings account or money market fund.
- Save More for the Future. Aim to save 10% of your income. Determine whether you’re on track for retirement. Increase contributions to your 401(k) – add 1 -2% today! Contribute to a Roth IRA or Traditional IRA.
- Pay Down High-Interest Debt. High-interest debt can make it very hard to get ahead financially. Make paying it down a priority. Start with debt with the highest interest rate and work your way down.
- Set Goals for the Future. Set your goals. Write them down. Can you see them? Like a lot of other things in life, e.g., losing weight, hitting the gym, running a marathon, etc., setting goals and creating strategies to pursue them will make you much more likely to succeed.
- Review Your Estate Planning and Legal Documents. Your core legal documents should be regularly reviewed to make sure that they keep up with your life. Newly married? New Child? Divorced?
- Review the Beneficiaries of Your Financial Accounts and Insurance Policies. Beneficiary designations are independent of your will and other estate documents. It’s critical to keep them current.
- Stay Healthy. Healthcare is a significant expense for most Americans. Take steps to protect your health (and your wallet) by building a healthy lifestyle and be proactive about preventative care. Annual physical? Flu shot? Semi-annual dental cleaning?
- Protect Your Credit and Identity. Identity theft is the fastest growing crime in the US. Protect yourself by reviewing financial statements and bills carefully for unauthorized activity. Check your credit report for free once each year at www.annualcreditreport.com.
- Create a Powerful Legacy for the World. An abounding life is more than financial success and a comfortable lifestyle. Whether you want to leave something to your loved ones or contribute to causes close to your heart, take some time to think about the legacy you will leave for the future.
