The beginning of a new year could signify a fresh start. It is a time when many people set goals for personal or professional improvement. As you begin to think about the goals that you would like to set, will you include financial goals? Freedom Debt Relief reviews the top five goals you should consider for the new year.
#1: Set a New Budget and Stick to It
Before you ring in the new year, start examining how much you bring in each month as well as your expenses. Determine your monthly budget and make it a goal to stick to it for the entire year. It is tempting to overspend, and this is where so many people get into trouble.
Freedom Debt Relief reviews of ways to be successful with your budget show that accounting for every dollar you have really helps. When you get paid, and before you begin spending, review your bills and budget and designate every dollar you have towards something. This helps you to be proactive with your money. Also, track your spending and examine your budget regularly. Adjust where necessary.
#2: Build Up Your Emergency Fund
Hopefully, you have established an emergency fund, but if you haven’t, now is the time to do so. The amount that goes into this fund really depends on your situation. Freedom Debt Relief reviews show that ideally, you want between three and six months of living expenses put aside. However, this may be difficult to do quickly. And if you have a lot of debt, you should start with a smaller emergency fund and focus more heavily on eliminating your debt. Try to put at least $1000 aside for emergencies and then work it into your budget to build it up to more, at a rate that you can afford to do.
#3: Reduce or Eliminate Your Debt
If you currently have debt, reducing it, or eliminating it entirely should definitely be a goal for the new year. How much you can get rid of depends on the amount you have and the amount you can afford to eliminate. Freedom Debt Relief reviews suggest that you set a specific goal for how much you want to eliminate this year, then start working on it. You’ll need to make more than the minimum payments to reduce it faster, so try to work into your budget extra money that you can put towards this debt. And don’t accumulate any additional debt this next year.
#4: Create a Long-Term Financial Plan
Your long-term plan should include saving for retirement like putting money in a 401k or other retirement account. This plan should also account for future purchases like a new home and even wealth building. You don’t necessarily have to wait until you retire to enjoy some of your money. Work with an experienced financial advisor to set a plan that fits your budget and circumstances.
#5: Find Ways to Grow in Your Career
One of the easiest ways to improve your finances is simply to earn more money. Are there ways that you could earn more at your current job? Or, is it time to make some changes to further your career? Freedom Debt Relief reviews show that taking classes or courses to advance your skills can have an impact on your earnings. This could be in your current position, or it could help you to secure a new, better-paying one.
So, don’t forget about your financial goals as you begin to form your list of goals for the new year. Good health and happiness are very important, but they are certainly easier to obtain if you are not stressed over your financial situation.