Everyone wants the same thing New year after New year; to be happy and live prosperous. For the most part saving money often makes people happy; and happy people find happiness in more than just money. So, truthfully these ideals go hand in hand. While we want these things year-round, it seems that the New year is just the perfect time to set new goals. The surprising thing is when it comes to money, most people have the same goals.
If you’re looking to turn around your New year by turning around your finances, tying one of these top 5 financial resolutions is a great place to start.
We’ve all said this before make a budget. The problem with this resolution is that it’s too vague, so automatically you set yourself up not to fulfill it. Making a budget just means saving money in general. By putting an actual value on it, $1000 you can monitor your progress and the resolution becomes measurable. Most people would admit that a thousand dollars isn’t even that much money, and yet less than 40% of Americans even have this much saved. One thousand dollars is hardly enough to be an emergency fund; it may fix a few unexpected car situations, or cover a random medical bill, but a thousand dollars is a thousand dollars more than you did have saved away and it’s the perfect baby step for your finances in 2019.
Put money away for retirement
Yet another resolution you’ve been creating for years; now is the time to actually do it. You’re one year closer to retirement this year, which means you have less time to save, so make the most of it now. Many of us like to sit back and assume that Social Security will have you cover d, but in actuality, Social Security is only meant to support approximately 40% of the individual’s previous income. This is certainly not enough to live comfortably. Putting money away for retirement starting in 2019 is another feasible goal because retirement savings are usually placed in separate accounts, yet another way to physically watch your money grow and of course once it’s in there, not being able to use it on something else.
Determine to live on one spouse’s salary
With thousands of families already doing this because they don’t have a choice, it’s safe to say that this goal is attainable. Challenging, yes. Painstaking, sure. But the payoff is well worth it. If you budget to only live on one spouse’s salary, imagine having a whole year’s salary saved by the end of the year. You could treat yourself to a well-deserved vacation. Or consider it a hefty supplement to the above-mentioned goal. The best part about saving money is, once you start it feels so good to keep saving.
Make one extra payment on your mortgage this year
This resolution seems simple enough but has a huge payout. Did you know that by making one extra payment to your mortgage, it can shorten the length of your loan by 4-5 years? That’s right, one payment; 4-5 years. That’s incredible! The best part about this resolution is that you have a whole year to achieve it and it’s totally up to you how. Make installments each month, or make the payment in one lump sum, such as with your tax returns or holiday bonus. This resolution will feel great now, and even better when you payoff your loan 4-5 years earlier.
Donate to one charity monthly
Because sometimes it’s not just about saving your money but spending it in the right places. Donating to charity often feels like saving money, because it’s for a greater cause. Many people believe in creating good financial karma; donate good into the world and good will come back to you.
Making it a resolution to donate money is also a method of budgeting because instead of waiting for extra money to fall in your lap to donate, taking action to donate money means you will most likely cut your excess spending elsewhere. Making your New year a prosperous one, does not mean you have to be the only one who prospers.
Who doesn’t want to be financially sound and secure? New ways to approach your finances is a start and sometimes seeking debt relief is the only way you can get a fresh start. If you are overwhelmed with debt and struggling to make ends meet personal bankruptcy may be an option for you. Hines Law is a full-service debt relief firm that specializes in Chapter 7 and Chapter 13 bankruptcy filings. We aid our clients with supportive as well as compassionate advice when it is required most. In addition to our vast experience in legal matters, we have a high degree of success in helping our clients obtain lasting debt relief in a timely and effective manner. Call today for a Free Consultation!