6 Painless Financial New Year’s Resolutions You Can Stick To
Here are six resolutions that can keep your financial resolutions of track.
- A New Financial Planning Lens
- Personal financial planning expert Nicole Lapin likes to frame money management through the lens of a “spending plan” instead of a budget, because it allows for little indulgences. Just like a cheat day in a diet.
- Check 401(k) Contributions, Try to Boost Them
- When was the last time you checked in on your retirement accounts? If you have some room to bump up your contributions, financial planning experts say you should do so. If you’re able to max out on your 401(k), think about setting up an IRA in addition to your 401(k).
- Check Your Credit Score
- You should remember to monitor your credit score, which can hold either the lock or the key to your financial planning goals. If your score is lower than you had hoped, do not slice up your credit cards. Instead put a recurring bill on them, and remember to pay your bills on time.
- Assess How You’re Tackling Debt
- Confront your debt with the highest-interest rate first, or an alternate strategy is paying off the smallest amount first.
- Adjust Short-Term Savings Goals
- If you’re saving for something in the near future, such as a car or a down payment on a house, consider whether your money is in the vehicle best equipped to help you reach those goals.
- Consider Your Stock Investments
- Factor in your age and your risk tolerance. Christine Benz, Morningstar’s personal finance director, says “If you’re getting close to retirement and haven’t checked your asset allocation recently, it may in fact be time to lighten up on stocks.”
See Elaine Low, 6 Painless Financial New Year’s Resolutions You Can Stick To, Investors, January 7, 2019.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.
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