The new year always ushers in a new set of goals or, revised set of goals and promises to keep. This past year has been very tough financially for most Americans, so naturally setting some financial goals would be a great start to getting back on course with personal finance by saving up, improving credit score and investing. Even if you have other goals taking the place of goals pertaining to money, these 3 are crucial to long term growth, happiness and preparedness. Here’s 3 goals you should jot down for this new year, as important feats to keep track of and work towards:
Stay committed to paying off your current debts, and tally up all the money that you owe in some way. If your debts are spread out in different places, it could be beneficial to consolidate those debts in one place. Let’s say you live in Tucson, it’s worthwhile to find personal loans in Tucson that could help pay off your consolidated debt. That way, you’re paying off loans that have accumulated high interest, while establishing a good repayment history and credit history. After that, you’re left with the personal loan, which typically should have a lower interest rate, to pay off. Take a good look at your finances and see if this is something worthwhile for you to get a personal loan to buy yourself time and maybe save money. You also want to check and see if you can pay your monthly installments comfortably while still able to afford your necessary expenditures.
Increase investment cash stash
It’s important to think about the future, however far ahead that looks for you. Increase your contribution to your retirement accounts, and if you haven’t opened one yet–open one ASAP. Opening a Roth IRA and investing in an index fund like S&P 500 is an excellent way to see your money grow over time with monthly investments! Think of ways you spend your money that don’t serve you. Do you spend on things that don’t serve your needs, but really just fulfill desires? Make savings goals by the month or year. Tell yourself that you want to save x amount of income each month and set aside that money for a rainy day or for investments to watch your money grow. It could also be motivating to participate in a savings challenge. Keep in mind that there may be some weeks where you have to spend on essential things, so don’t get upset with yourself.
Beef up your fun budget
Life is about having fun and enjoying every moment of it. Saving up isn’t just about increasing your wealth, it also means to enjoy life in any corner of the world, in every way. This is the last step in your financial analysis however. Once you sit down and analyze your expenditures and monthly income, you first want to calculate in necessities vs waste, then debts, and how much you can save. From there, check your savings amount and see how much of that can be your fun budget for things like travel, dining out, cultural, parks, and more!