The tradition of New Year's resolutions dates all the way back to 153 B.C. Every year, as day one begins, we start making resolutions - for the betterment of our lives, to get back or lives on track, or for a fresh start.
Most of us pledge so many things to get our finances back on track. But do we miss anything?
We set our goals, but we forget don’t set the course. We don’t carefully plan to achieve the resolutions we make.
Today, we are going to discuss the five major financial resolutions that people take and focus on the steps needed to achieve those.
We all hope to become debt-free. But if you really want to, you have to take decisive and definite steps.
Building an emergency fund is important to shield against unforeseen calamities. But how much is enough?
As per industry experts, setting aside a fund in an interest-bearing savings or money market account to cover for at least 6 months’ worth of expenses in case you lose your job, go to maternity leave, confront a medical or other emergency. But how do you build one?
It’s wise that you’ve thought about creating an estate plan for your offspring. A will is significant in determining how your estate is distributed when you’re no longer around. But how do you get yours?
Many might suggest making use of the latest will preparing software. But it’s better to avoid taking such a measure. According to Marvin Toy, co-author of Smart Tips for Estate Planning, “If you want anyone to benefit from your estate, then hiring a lawyer to write your Will is money well spent. A well-written Will that is customized to your circumstances is a document that can often suit your needs for many years, or even decades.”
As long as saving for retirement is concerned, the one who starts early seems to be the clear winner. The earlier you begin, the better chances are that you’ll get to grow your retirement eggs for many years.
Also, make sure to increase the amount you set aside every year - even it’s by just 1%. Invest the money that you don’t expect to touch for 10 years or more in broad-based stock mutual funds or exchange-traded funds.
It’s good that you’ve thought about your kid’s college education and contemplating to stockpile some resources to back the same. The best college savings plan where you can pour your hard earned money is the 529 plan, because here you will be able to withdraw the money tax-free.
Indeed, most of the college savings plans are operated by states, and almost each one has at least a second plan. Compare to see which is the best for you and start saving.
A substantial amount in hand won’t intimidate you to go for high-interest private student loans.
College is expensive, averaging $19,548 for a public college and $43,921 for a private institution. So the earlier you start saving, the better results you get.