Set up your financials goals for 2020
Coming year is nearly upon us. As such, it’s likely that you’re looking to set up financial goals for 2020. And possibly even talking to your financial advisor about your money goals for the upcoming year. Doing so can give you some much-needed perspective on personal cash management, something that many people don’t know a lot about. That being said, there’s no rule that suggests you can’t start thinking about it now. Here are five suggestions that you can incorporate now to have more solid finances in 2020.
Here’s a list of 5 financial goals for 2020
1. Start Your Emergency Fund
There are a few pieces of advice that most financial advisors will give you right off the bat. Saving $1,000 to put in an emergency fund would be one of those things. Having this amount of money set aside means that you never have to worry if your car needs a new set of tires or if you suddenly need to go to the emergency room. Your emergency fund will take care of it.
Most people who keep this sort of fund replace the money if they have to use it. That way they always have $1,000 when Murphy’s Law strikes. If you believe that you can’t put aside this amount of money, think of it this way. If you set aside less than $85 a month, by the end of the year you’ll have your thousand bucks, according to Forbes.
2. Make a Budget
For many people, the word budget is a dirty word: For them, it means restriction. However, for the financially savvy, budget is the best word possible. Why? Because people who can stick to a budget always know how much money they have. They never have to wonder if they’re going to be able to pay their utilities or their mortgage.
These financially savvy folks look at their receipts at the end of each month in order to balance their chequebooks and to keep their finances straight. For those who want a sense of financial freedom, the first step in their New Year’s resolution should be to create a realistic budget, like the 50/30/20 budget.
This budget is way easy to follow. You put aside 50% of your income to pay your necessities, like utilities or your mortgage. Another 30% goes to the things you want: this could be a Saturday night out at the movies or a new coat. Finally, 20% goes to your savings and your debt. If you’re not sure how to implement this budget, you may want to visit with your financial advisor about it.
3. Save Money
If your cash management strategy doesn’t include saving money, you’re doing yourself a disservice. While we talked a bit about putting $1,000 aside in an emergency fund, this shouldn’t be your only savings. Most financial advisors suggest that their clients put aside at least six months of income. This money would be used to alleviate the stress that comes from a job loss or a long illness.
Financial professionals also suggest that their clients put away money for retirement, their kids’ college education and other important events. If one of your financial goals for 2020 s is to save money, but you don’t know how, then you might consider enrolling in an automatic savings plan according to The Balance.
4. Get a Handle on Your Debt
Your personal finances we’ll start to look and feel much better if you make a resolution to get out of debt in the coming year. When you’re in debt, your life is usually very stressful, because your creditors often call you. You also worry if your check is going to be enough to cover all of your expenses.
Do whatever you can to get out of debt as quickly as possible. This could include selling off some of your items, foregoing some of your entertainment for a while or even getting a second job. Although this is a sacrifice, most people who have gotten out of debt say that it’s an incredible feeling to be on the other side of it.
5. Have Some No-Spend Days
Having a no-spend day will become a favourite personal finance trick if you know how to use it right. Basically, a no-spend day or a no spend weekend is where you commit to not spending any money at all. That means that you eat at home, you find free entertainment and you skip spending money on unnecessary items.
If you’re having trouble sticking to a budget, adhering to some no-spend days can help you. According to US News and World Report, this is particularly true if you have made some New Year’s Financial resolutions, because it’s easier in the winter to spend less money. It’s just too cold to go outside, and therefore, you often spend less. If this turns out to be the case for you, then take advantage of this time to develop a new “no spend” habit of the year.
Final Words for you financial goals for 2020
Like many people these days, you may feel like you’re a bit illiterate when it comes to set up financial goals for 2020. That may be why you feel that you cannot stick to the New Year’s resolutions that you have made for your money. You really may not know how to take care of it.
Fortunately for you, I can offer a number of suggestions that can help you to get your finances in order of the coming year. Please feel free to contact me via email or phone.