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Making Smart Financial Resolutions for 2017

One of the traditional activities for this time of year to make resolutions for the New Year. Making smart financial resolutions should be part of your New Year’s resolutions. Avoiding the common mistakes in making resolutions can help you be more successful in achieving your goals for 2017.
 
What are some of the areas that our financial resolutions should cover?
The important areas are saving, spending and planning.  All three of these topics are the building blocks of a strong financial foundation for success.
 
What are ways that people can have poor financial resolutions?
Usually the mistakes fall in one of two categories, either the resolution is very vague and general in nature or the resolution is completely unrealistic for their financial situation.
 
What would be examples of these types of poor resolutions?
A vague goal would be that you want to lower your credit card debt.  Without an amount or a timeframe, there really isn’t anything to measure.  An unrealistic goal for someone who has $5,000 in credit card debt would be to declare they intend to be debt free in 60 days.
 
How can we have strong resolutions for 2017?
Make sure that your goal is specific, measurable and achievable. You don’t want to set an easy goal but you do have to have a chance of making the goal or your commitment level will not be maintained and you won’t even come close to making your goal.
 
What are two or three resolutions around savings for 2017?
Good savings resolutions could be that you want to increase your emergency fund to cover 1 more month of expenses by the end of the year. Another is that you might want to save for 100% of your 2017 vacation expenses.  If you have kids, you might set a goal of saving at least $5,000 in a 529 plan in 2017.
 
What would be a good resolution for spending?
 A good resolution to start with around spending is that you will find ways to save at least $25 per week on grocery expenses. Because this requires you to take action each week, you will be more conscious of your spending weekly so it has two benefits, lowering expenses and making you more financially aware.
 
Are there critical planning resolutions that we should have in 2017?
One of the most important resolutions would be having a will and if you are married or have kids, the next critical resolution would be to update your beneficiaries on all your investments, retirement savings and insurance contracts.
 
Resolutions are so hard to keep, how can we follow through on our financial resolutions?
Have a plan to celebrate the small achievements along the way. Positive reinforcement is always the best way to be encouraged to continue working towards a major goal.
 


Posted: 12/29/2016 with 0 comments

Categories: Estate Planning, Financial, Money Matters, Saving, Spending



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