The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Information on this website may not be current. This website may contain links to other third-party websites. Such links are only for the convenience of the reader, user or browser; we do not recommend or endorse the contents of any third-party sites. Readers of this website should contact their attorney, accountant or credit counselor to obtain advice with respect to their particular situation. No reader, user, or browser of this site should act or not act on the basis of information on this site. Always seek personal legal, financial or credit advice for your relevant jurisdiction. Only your individual attorney or advisor can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, contributors, contributing firms, or their respective employers.
Credit.com receives compensation for the financial products and services advertised on this site if our users apply for and sign up for any of them. Compensation is not a factor in the substantive evaluation of any product.
When looking at achieving some of your financial goals, there are just some things you must do. The end of the year is a good time to evaluate how you’re doing so far and where you want to head in the future to help you reach your goals. This includes your financial life.
If you haven’t written a list of money musts yet, here are few significant tasks you might want to include.
If your New Year’s resolutions always include a vow to pay off your high-interest debt but the balances are still hanging around the next Christmas, getting rid of the financial dead weight should be your top priority. The longer you stay in debt, the more money you’ll throw away in interest. Debt can also put a serious stranglehold on your ability to save and achieve your other finance-related goals.
Creating a plan to eliminate your debt once and for all is the first step toward crossing this item off your list. Add up how much you owe and take a look at what you’re paying in interest for each debt. You could start by paying off the ones with the highest interest first to save money or knock out the ones with the smallest balances for a confidence boost. Whichever method you choose, the key is to stick with it and throw every extra dime you can at your debt.
The occasional emergency is inevitable but something as small as a flat tire can become a big problem if you don’t have cash set aside to cover the unexpected expense. You could put it on a credit card or get a loan if you need to but then you’ll end up having to pay interest. Building up an emergency fund can safeguard you against financial disaster when the storm clouds gather.
How much of an emergency fund you need really depends on your income, expenses and what you need to feel secure. As a general rule, you should have anywhere from three to six months’ worth of expenses saved, but you may decide to save more or less, depending on your situation. If you don’t have anything saved at all, you’ll want to tackle this goal as quickly as possible. Even if you start with only $25 a week, you’ll be moving in the right direction.
What do you envision when you think about the kind of lifestyle you want when you retire? Are you relaxing on a beach, playing golf or traveling the world? Whatever your retirement looks like, you need to make sure that you have a big enough cushion to be able to live out your dreams. If you haven’t started saving or you’re not saving enough, you can’t afford to waste another second.
When you’re planning your retirement savings strategy, it’s important to research every option available. Ideally, you should be maxing out your employer’s retirement plan to take advantage of the matching contribution. In addition to maxing out your plan at work, you should also look into what other types of investment vehicles are available, such as a traditional or Roth IRA.
Tuition rates are steadily increasing and the number of students taking out loans to pay for their education has reached an all-time high. If you’re worried about your kids being saddled with student loan debt, contributing to their college fund can help ease the burden and potentially earn you some tax benefits in the process.
Setting up a 529 plan is an easy way to sock away money toward future education expenses and qualified withdrawals are always tax-free. At least one 529 plan is offered in all 50 states and you don’t necessarily have to be a resident of the state to enroll in its plan.
When you’re comparing college savings plans, be sure to pay attention to the fees and investment choices to make sure you find the right fit.
When your financial future is secure, you have an opportunity to help others. Whether you give to your church, make donations to a favorite charity or offer direct help to a needy family, your contribution can potentially have a long-lasting positive impact. Not only is giving to others emotionally rewarding, it can be financially rewarding as well since you may be able to get a tax deduction for your donations. Just make sure to do your research before donating money to charity to ensure your hard-earned cash is going where you want it to go.
Whatever you decide to include on your list, it should reflect where you’re at now and where you want to go. Your list may be longer or shorter but writing down your goals can help you stay focused on tackling your most important financial to-dos.
Image: moodboard
March 11, 2021
Personal Finance
March 1, 2021
Personal Finance
February 18, 2021
Personal Finance