These financial steps act as a clear path to success, regardless of your current situation.
With the start of a new year often come good intentions. Many focus on goals like improving finances and fitness, but often fitness resolutions fade by February due to life's demands.
Yet, enhancing your financial well-being is simpler than sticking to a new workout routine.
Here are some achievable financial goals for the new year that can benefit anyone.
1. Maintain a robust emergency fund
After enduring years of rising prices, lots of people are dipping into their savings just to cover everyday expenses.
But having a solid emergency fund can be a game-changer. It helps ease the stress of unexpected expenses, like a sudden car repair or if you find yourself temporarily out of work.
Wondering how much to stash away? Experts suggest aiming for three to six months' worth of living expenses as a solid foundation. However, having more than six months saved up could be beneficial, especially if you anticipate a job switch or a move in your future.
2. Explore Additional Income Streams
Looking to grow your retirement fund or save up for a new car next year? Explore ways to bring in extra income and fast-track your goal achievement.
If you have a knack for crafts, platforms like Etsy can be a great source of additional cash. Think about taking on a part-time job or finding extra work that aligns with your unique skills. By earning an extra $41 each day, you could boost your savings by around $15,000 by this time next year.
3. Ensure Your Insurance is in Order
Keeping your insurance well-adjusted is crucial; it's easy to set it and forget it, leading to potential overpayments for unnecessary coverage or overlooking important items you thought were protected.
Refreshing your auto insurance quotes is a simple task. Regularly check for discounts, too. Whether it's a good driver discount, a multi-vehicle discount, or lower premiums for a student with good grades, these can add up.
Extend the review to other coverage like home or renter's insurance. If there have been changes in your belongings or home, or if you've made additions, ensure that your insurance policies accurately reflect the updated value of your property.
4. Live Within Your Means
Before reaching for your credit card again, take control of your spending. Compare your expenses to your take-home income and evaluate what's remaining.
If the numbers don't align, consider using the 50/20/30 budgeting rule. This helps you reorganize your household expenses, creating space for both your short-term and long-term financial goals.
