In an effort to reverse that trend, more
than two-thirds of U.S. adults will make
financial New Year’s resolutions for 2018,
according to the survey. Among those
that plan to step up their financial game,
top goals include setting and following
a budget (40 percent), making a plan to
get out of debt (39 percent), establishing
savings (32 percent) and boosting retirement
savings (31 percent).
“We continue to see a lot of anxi ety about
money,” said Ted Beck, president and CEO
of NEFE. “Three-quarters of Americans said
something causes them financial stress, and
it’s most often not saving enough and debt
that are to blame.”
Reduce money stress and take control of
your finances with these tips for financial
success from the experts at NEFE:
1. Get debt under control. Take a hard
look at what you owe. If there’s a clear
warning sign of too much debt, take
action. Set a goal to reduce your debt load
next year by 5-10 percent. That might
mean reducing impulse shopping. When
you face temptation, delay the purchase
and give yourself time to consider
whether it’s a wise move that fits within
your budget.
2. Save now and do so often. Preparing
for unexpected events like medical
emergencies can help reduce the
financial impact of a life-changing event.
Emergency savings can offset unexpected
costs and help you get back on solid
footing. A good rule of thumb is to have
6-9 months of income set aside. If that
feels out of reach, start with a smaller
goal, even as little as $500. When it
comes to saving, it’s also a smart idea to
think long term. Review your long-term
savings and ensure they are on target for
your retirement plans.
3. Shop for better services. You may be
surprised by how much you can save
when you periodically shop for the most
competitive rates on your recurring bills.
Make a game out of shopping providers
to find the best value on your insurance
policies, cell phone plan, internet and
utilities. Ask your providers about current
rates and any promotions available to
long-time, loyal customers. Then look at
alternative providers to determine
where you can trim some spending. Be
sure to understand your current offering
thoroughly so that you are comparing
apples to apples.
4. Understand what’s behind your
financial decisions. If you ever wonder
why you feel good about spending
money on vacations but avoid saving
for retirement, the answer may lie
in your unique values and how they
influence your financial decision-making.
Consider taking the LifeValues Quiz at
smartaboutmoney.org, where you can also
find help with setting goals and getting
your finances in order.
BUDGET BETTER
To take control of your money and your financial life, it’s
important to get organized. The most effective tool is a
budget. Creating a budget can help you meet personal
goals such as buying a house or car, or taking a vacation. It
also can help you prepare for emergencies and manage debt.
Income: Start by listing all income sources, including
wages, bonuses and tips, as well as non-employer income
such as child support, alimony or Social Security. Generally,
you’ll want to look at your recurring income, but also
include long-range, infrequent income that you anticipate,
such as tax refunds.
Expenses: Next, take into account all of your recurring
monthly bills. If you have major periodic expenses, such
as a six-month auto insurance premium, account for it in
monthly increments so you can save up and have the money
ready when the payment comes due. Remember to account
for the bills you pay (mortgage or rent, utilities, etc.), as well
Photo courtesy of Getty Images
as unspecified items like lawn maintenance and personal
hygiene purchases.
Categorize Spending: Some people find it helpful to break
expenses into categories, such as housing, transportation, health,
personal, entertainment and so on. The key is to capture every
point where money is going out so you can get a thorough picture
of your ongoing expenditures. It can take a couple months to get a
true understanding of what your typical spending looks like.
Savings: An effective budget doesn’t just capture what’s
going out; it also reflects what you’re able to keep. If you
haven’t already, outline a savings plan that allows for an
emergency fund, regular savings, retirement and investments.
Debt: Consistently paying down the accounts you owe with
the maximum amount you can afford is the surest way to
reduce your debt load. Account for each debt you owe in your
budget, and establish a payment plan that shows how much
you can allocate to each account each month.
Feb/Mar 2018 Community Magazine 17
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