Kickstart Your Financial Fresh Start
As the calendar flips to a new year, it’s the perfect time to break free from bad money habits and adopt empowering new ones. We tapped into the expertise of eight seasoned financial planners to uncover their top tips for making lasting changes in 2018.
Reflect, Review, and Revise
Before forging ahead, take a step back to assess your 2017 financial progress. Certified Financial Planner Stacy Francis recommends evaluating which goals you achieved, investment performance, and debt repayment. Celebrate your successes and create a concrete plan to improve areas where you fell short.
Focus on What You Can Control
In a world where interest rates, tax laws, and market fluctuations are beyond your control, it’s essential to focus on what you can manage. Financial advisor Russ Thornton suggests creating a budget, maximizing your company’s 401(k) match, and paying down debt quickly.
Reset Your Spending Habits
The first quarter of the year is an ideal time to curb unnecessary expenses. Certified Financial Planner Ryan Glover advises cutting back on dining out and shopping to get your finances back on track. This “hard reset” will set you up for success as spending obligations increase throughout the year.
Schedule “No Spend” Weekends
If a three-month spending detox feels daunting, try designating “no-spend” weekends instead. Certified Financial Planner Desmond Henry suggests filling your weekends with free events, outings, or tackling that to-do list to save money and boost productivity.
Plan Ahead for Holiday Expenses
Avoid holiday debt hangovers by opening a dedicated savings account for holiday shopping and contributing to it throughout the year. This strategy will help you avoid credit card debt and stay on track financially.
Track Your Net Worth
Knowing your net worth is crucial to understanding your financial health. Certified Financial Planner Jeff Rose recommends aiming to achieve $100,000 in net worth, which will help you focus on growing your assets and reducing liabilities.
Gradual Savings Strategy
For long-term success, Certified Financial Planner Pamela Capalad suggests implementing a gradual savings plan. Start with a manageable amount and increase it over time to reach your target.
Boost Your Retirement Savings
Take advantage of your employer’s 401(k) match and consider increasing your contribution by 1 percent. This small change can lead to thousands more in your retirement account over time. If you don’t have access to a 401(k), consider an Individual Retirement Account (IRA) instead.
Avoid Investment FOMO
Stick to a well-diversified, low-cost investment strategy and avoid getting caught up in trendy investments, advises Certified Financial Planner Julie Ford. This will help you achieve your long-term goals without making emotional, rash decisions.
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