Financial goals for the New Year
It’s a new day, it’s a new year, and this is your life. If you are still working on your resolutions for 2016, it’s not too late to create some smart financial goals for the months to come.
- Get rid of that credit card debt. Irresponsible spending habits in the early years turn into high-interest debt. Make a change this year and pay off the card with the highest interest rate; then move to the next one. Once you paid off the debt, get into the habit of paying your credit card bill in full each month.
- Student loans. In case you’re still paying for them, make it a priority to make it go away. You will feel extremely liberated, and not only financially.
- Earn more money. Perhaps you have a job and with it a bit of some income stability. Aim for a raise, a promotion, or a new job if the first two don’t apply.
- Be properly insured. Perhaps you don’t feel it’s necessary to save for your car or home insurance. You might even settle for a low-cost health plan and skimp on some cheap renters insurance. But it’s a new day, it’s a new year, your health is more important than money, and you surely have stuff that’s worth money. Moreover, you can even take some time and look into some term life insurance plans. This judgement is not a bad omen, but rather a sign that you’re prepared come what may.
- Save for a down payment on a home. Depending on your earning and expenses, if you can afford it, go ahead and buy a home. If you wish to settle down, you’ll need to save as much as possible to get the house you want. A huge mortgage will leave you breathless. Save up and make those monthly mortgage payments manageable.
- Create an emergency fund. Studies show that at least three months’ worth of expenses will help you handle easier whatever comes your way.
- Give to charity. You can always help those less fortunate than you, so don’t shy away from donating to a cause you believe in. Firstly, your good deed will help someone and you will feel great about it, and secondly, you can get a tax deduction too.