With the New Year upon us, many have committed to changing for the better in one way or another. One thing many focus on is finances.
Achieving financial independence is an admirable goal, but very few people know where to start. If you’re starting to take steps towards financial freedom this year, here are six tips from our investment financial services team that you should follow to set financial goals for the New Year.
1) Getting a clear picture
Setting financial goals is crucial, but before you can set any goals, you need to know where you currently are. Gather bank statements, bills, payroll stubs, etc. Look through your savings, debts, and investments. Assessing your financial status may feel stressful and overwhelming, but getting a clear picture of where you are financially will allow you to set realistic goals for the year.
2) Set a Budget and Stick to it
One of the most important things you can do for your financial future is set a budget. The budget should be reasonable and within your means. Make sure that your housing, food, and utility costs are around what you usually pay and your income as usual.
Now is the perfect time to plan your retirement and savings as well. Also make sure you include “savings” in your budget.
3) Pay Off Your Debts
Debt is a burden and can prevent you from achieving your financial dreams. Start paying off your debts now and stop adding to them. Interest is stealing your money from you. Commit to paying off debts now, and you’ll be able to have a bright financial future.
4) Plan for Retirement
Retirement is coming, and you should be preparing for it. You need to determine exactly how much you need to retire. Knowing that number will help put what you need to save into perspective.
Planning for retirement is always an excellent financial goal, and the New Year is the best time to focus on it. Queensborough Wealth Management has an amazing team of wealth planners that can help you with retirement planning services!
5) Stay Organized
Setting budgets and goals are great, but these efforts are useless if you do not have a plan to stay on track. Staying organized is a critical step to meeting your financial goals this year. There are several tools and apps like Q’s Mobile Banking and Money Management that can help you stay on track for online mobile banking. When it comes to your personal budget, the more organized you are the better.
6) Establish a Savings for Emergencies
Everyone is vulnerable to unforeseen emergencies. Without proper planning, your budget could fall apart with one unexpected event. If you haven’t already done so, it’s important to establish an emergency fund. This will protect you if you experience any sort of unexpected emergency without breaking the bank and budget.
Your fund should be at least 3 to 6 months’ worth of expenses. This fund may take a while to build up, but the financial freedom you gain from having it is worth the wait.
This New Year brings new possibilities for everyone. What do you want to achieve this year? Consider your financial goals and start taking the steps to achieve them now.
Whether you start in January or halfway through the year, these 6 steps will help you reach financial success. Contact our investment financial services team today.