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If you’ve finished making those New Year goals, you’d surely like to kick start the year with a fresh financial plan. Here are the top financial tips to begin the New Year. Educate yourself with these financial steps that can take you nearer to your financial goals for the year.
Financial goals can be rather overwhelming, which is why most of us are not able to keep them. Learn to make smart and specific goals instead of just general ones like ‘saving more money’ or ‘spending less’. For instance, make it specific, like I’ll save an addition $2000 every month and put it towards an emergency fund.
Here are Some Money Tips for Long-Term Goals That You Can Check Out to Turn Your Financial Goals into a Reality
#1. Educate Yourself about the Stock Market
If you’re a first-time investor, you’re justifiably wary of frauds in the stock market. Educate yourself first. Pick up a copy of One Up on Wall Street or The Intelligent Investor and learn about valuing investments and creating your portfolio from the best financial advisors.
Commit yourself from the first year of the New Year to learn more about money and investments and you’re well set on your way to creating long term financial security and prosperity for yourself and your family.
There are many books as well as online courses from the best financial planners. These are available to help you understand investment in the stock market. You could become an investment genius within no time at all.
Start by making conservative investments. Check out tutorial sites like The Mint to learn about different ways to invest, risks, rewards etc.
Tip: Try playing free trading games online at the Virtual Stock Exchange, to test strategies and get practice managing your portfolio.
#2. Tips for Car Insurance
- As a part of money saving tips, before you opt for car/vehicle insurance, make a careful comparison of various quotes.
- Check out the features. See whether there is a no claim bonus offered. Try to get insurance for people who are in the car with you as well.
- Check out the fine print.
- Know the value of your car, as it will help you with saving on premiums. Calculate its present value, so that you can negotiate with the company and reduce the premium of the insurance policy.
- Go for higher deductibles, to reduce the premiums.
#3. Health Care Savings
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You’re probably into the retirement savings plan, so it makes sense to join the HSA or health savings account as part of essential financial planning tips. You get tax advantages and you can reap a good harvest for your retired life. These savings can be used primarily for health-related expenditure, but they can also be used as general retirement funds.
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Try not to make any withdrawals, and you could easily earn even a million dollars if you keep contributing for, say, 40 years, with a 7.5% return rate. It’s a strategic aspect of retirement financial planning and could help you achieve your New Years resolution.
Open an HSA, and contribute at least $3000 a year or double the amount with your spouse, as part of solid retirement financial planning tips. You could even opt for a mutual fund’s investment with your HSA amount.
#4. Realistic Savings Goal/Automatic Savings
If you want to achieve your financial goals of family finance this year, the easiest way is to automate savings. A dollar saved is a dollar earned.
Have a financial goal. What are you planning to do with the money? Set a time frame for reaching those goals. Set up automatic direct deposits directly from your paycheck into a separate saving account. Out of sight is out of mind, so you will not feel the pinch.
Try to save the same percentage of your earnings each month. Even try creating several savings accounts for different goals, say vacations, home renovation, retirement fund and so on.
#5. Retirement Tips – Strategic filing of your Social Security
For most retired people, Social security continues to be the main source of income. Use these strategies to get the maximum benefit from social security.
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- While considering the best time to retire, make sure that you work for a minimum of 35 years to get the maximum benefits.
- If possible, wait till 70 years and delay retirement credits, especially if you’re healthy. You can start at 62 years and delay it till 70, and with every year of delay, the benefits increase by 8%.
- How to be productive? If you want a bigger social security check, try getting additional certifications and move to better paying jobs.
#6. Emergency Funds
While setting up personal financial goals, you must have emergency funds equal to a minimum of 6 months of your average living expenses.
Set up a fund this year for meeting unexpected financial crises situations. Take care that you never spend it on wants like a vacation, a television and so on. The fund should be used mainly for:
- Medical emergencies
- Loss of job
- House repairs like a leaky roof
- Unexpected travel expenses, like a death in your family, last minute flight tickets and so on.
#7. Use Apps/Track Spending
I agree it can be tedious to keep track of all your expenditure. Yet, this habit could save you plenty of money. You get a better idea of where the money is being spent and you can avoid overspending the next month.
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Go the old-fashioned way and use a small notebook. Or you could just use your smartphone and create notes for all expenditures. There are also plenty of free spending tracker apps that do the work for you. Save all receipts, check out your online banking details, ATM receipts, credit card statements etc.
#8. Smart Shopping Strategies
Make smart purchasing decisions.
- For instance, if you want to purchase that new television, charge it to a credit card with a rewards program. You can even get cash back for some purchases for eligible purchases.
- Check out online forums and or use the Ebates app to make easy money and get more information on deals and flash sales. Check out reviews before going in for a deal.
- Groceries can take a huge chunk out of your paycheck. Plan ahead, check out the inventory, look at deals and then plan your meals around them. Use substitutes for expensive items.
Last Word
The New Year is a great time to be overhauling your financial habits and make some solid resolutions that will help you achieve your goals for the year. Set your goals and work towards them.
If you want to really succeed in your New Year resolution this year, make sure to set an achievable number of goals based on these financial tips. Commit yourself to the goal and track your progress regularly. Check out your investments and review your investment portfolio. Make sure to plan for emergencies.
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A New Year resolution does not always have to be centered on giving up alcohol, smoking or begin exercising, though they are all great resolutions as well.
Take control over your financial position, set new goals, and consider investing in stock markets. Make a top financial resolution for the New Year and, more importantly, make it stick.
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