With the new year under way, many are looking to make a New Year's resolution to improve their finances.
Some helpful tips for making a financial resolution include:
- Know what you want. Don't just say, "I want to save
money." Put a firm number to it. For example, "I want to save $2000" and pay off a
particular credit card. Then make a plan
to DO IT.
- Prioritize your debts. Not
all debt is created equal. Make a list of your liabilities and organize them by
the annual interest rate. Then,
concentrate on paying off the debt with the highest interest rate first. Pay off the one with the next highest rate
next, and so on.
- Open
an IRA. If you haven't
done it yet, try to open an IRA or a ROTH this year. Then, fund it with an equal monthly
contribution. Get into the habit of
saving.
- Review
your Portfolio. It is easy to just "slide along" and not review your accounts. Make a plan to go over your retirement plan
and your investment portfolio with your spouse, or even call your investment
professional and do a thorough review with him/her. Things change through the years, and you may
need to update your plan, change beneficiaries, or even change your investments
because you might have a change of objectives.
- Read a
financial book. This
is one that many find hard to do. But try to find a good financial book and
become more educated on investing and finances. Go to the library, look in a
bookstore, or even just Google financial books to find one that has the most
interest to you.
One of the easiest and most important things you can do is to go see your
investment counselor. Most are
happy to do reviews and try to help you with your financial goals and
problems.
