At the end of each year, we all make resolutions with grand hopes for the year to come. Many of these resolutions flame out before they have a chance to make any sort of meaningful impact. In the case of one’s finances, a bit more discipline to significant changes. Major restructuring is needed and habits that were once harmful have to be abandoned.
Below are four resolutions one could make for New Year’s that would help in building towards a better financial future:
Not many of us have as much in our savings account as we would like. Most of us are not even able to save much at all. It’s important to consider all expenses versus one’s income before the idea of saving anything can be ruled out. Work can be done to bring expenses down and a pledge could be made to save a little bit each month, even if it’s just a small amount. Additional changes could be made to increase the possibility of someone being able to save more.
When someone says that they’re making an investment, that could mean one of many different things. Some people invest in the stock market while others put money into their 401k account. The services of a financial planner would come in handy in this scenario, a trained professional who would be able to pinpoint the best path forward in terms of one’s investments. Between a regular savings account and one’s investments, the possibilities for a good financial outlook increase considerably. Differentiation is key because it’s not a good idea for a person to put all their eggs in one basket financially.
Spending More Wisely
We all come across things in this life that we feel like we can’t do without. The reality of the situation is that there are two distinct types of things we’ll encounter in our lives, needs and wants. We can convince ourselves all we want that the things that are really our wants are actually our needs. No amount of convincing will make this true though. Our needs are food, shelter, clothing, and expenses associated with maintaining our health. Anything else can be skipped or eliminated. Needs to be prioritized before wants can even be considered.
Blustering into the future with no plan in place is a recipe for disaster. Every step of the way needs to be planned out to the most minuscule detail. This process might seem arduous, but it’s the only way a stable financial future can be possible. The more work one puts into planning their financial future, the higher chance they will have to succeed. Calling on the opinions of experts in the field is not the worst thing in the world. In fact, it’s recommended because it gives a better picture of what’s happening than an inexperienced person could develop on their own.
For further help and guidance on your 2021 financial plan, give the team at Firefighters Credit Union a call today at 608-784-9480!