Three steps to get closer to your financial goals
Setting a goal to get out of debt or begin saving or investing is common for the beginning of a new year. Whether or not you made a financial-related new year's resolution, here are four things you can do, starting now, to set yourself up for reaching those financial goals:
- Define your goal. Is it to pay off debt? Buy a house? Max your 401k contributions? Determining the goal you have will help you determine what steps you need to take to reach that goal.
- Research. There are lots of methods for paying off debt, increasing saving, and invest money. While we don't have all the answers, we do know a few ways we've seen our clients successfully reach their goals. For debt, we recommend paying off the highest-interest (usually a credit card) debt first. To save more money, it's helpful to put any extra or surprise money into a savings account, or automatically draft a set amount each paycheck so that you don't even see it. Investments are a bit more personal and require more specific planning based on your unique situation, but generally, contributing enough to a 401k to get the employer match is a great place to start.
- Make and execute your plan. Whichever goal you've set, it's helpful to set smaller goals along the way. If you're saving for a $20,000 down payment, what increments can you work toward along the way? For paying off debt, where can you cut other expenses to increase your payments? It may be helpful to write these down, or talk with a professional who often sees things you may miss. Additionally, for investing, working with an experienced advisor can help you ensure your future needs are defined and planned for. While we can't guarantee success, we can help you begin the journey to a promising future.
This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal.
