Many of us are setting goals and resolutions for the New Year. Some will pledge to exercise more while others may try and give up old habits. But what about financial goals? Financial professional Johnny Gottstein is joining FOX40 at 6:45 a.m. with a few ways to save more money, pay off debts, and structure your budget in 2019.
Common Reasons Why Most People Aren’t Reaching Their Savings Goals
- Too much credit card debt
- Too much spending on items that they want vs. items that they really need
- No budget plan or idea of when expenses are due.
Once the reason is identified, it’s easier to put together an action plan. Remember, try and make realistic savings goals. Saving is a marathon and not a sprint!
Not everyone’s savings goals are the same.
- If you’re in your 20s and 30s, it could mean growing & saving for your assets. In your 40s and 50s, it means talking to a financial professional about where to put your money to optimize your return and meet your goals.
Once you cut out unnecessary expenses, start increasing your contributions to your retirement plans or savings accounts. If you do not have one set up, open an account with your employer or bank. Many companies have a match policy that will match a certain percentage of what you contribute to your 401k or retirement plan. If you have yet to max out your 401k contributions, consider putting your end of year bonus into retirement savings.
When it comes to debt, the first step is to get organized.
Then it’s important to make a plan to start paying it off. Try and pay off the card with the smallest balance first. By doing that, you could be able to eliminate carrying a balance on one card and that will give you a feeling of accomplishment to keep paying down your other debts.