1. Pay off Debt
The Average American household now carries about $16,000 in credit card debt from month to month. Excessive debt, interest fees, and minimum payments associated with credit cards often crowd your ability to pay other essential bills or save for retirement. If you’re having trouble with high credit card balances, you should resolve to improve your debt situation in 2019. Many options exist for people looking to address massive debt. For example, you can use debt settlement services such as those offered by National Debt Relief. A debt consolidation loan or credit counseling may also be helpful. However you choose to go about it, resolving to get out of debt is one of the best ways to improve your financial situation in the upcoming year.
2. Establish an Emergency Fund
If your emergency fund is already well-established, kudos to you! But if not, this is something you’ll want to get ahead of, stat. Regardless of your situation, knowing you have some money saved away in case of an unexpected financial hit offers insurmountable peace of mind. Whether it’s car troubles, medical bills, or a job layoff, an emergency fund can provide a financial cushion to lay on while things get sorted out. Although establishing an emergency fund should be a top financial priority, it could take some time to build.
A good rule of thumb is to have enough money in your fund to cover three to six months of expenses. If you don’t have much to start building with, start low! Start adding increments of $50, $100, $1,000 – whatever you can afford – then watch your emergency fund grow!
3. Open an IRA
Another financial New Year’s resolution we’d recommend you make for the new year is to open an Individual Retirement Account (IRA). This is a great, easy way to begin saving for retirement because it benefits you now and later.In2019, you can drop up to $6,000 into your IRA, and that money is tax-deductible. That means if you earn $50,000 in gross income in 2019, but you put $6,000 in your IRA, you’ll only be taxed on $44,000 of your income. On top of that, many employers offer retirement benefits and will match a percentage of your investment per pay period! It sounds easy enough, but don’t make the mistake many investors make when opening an IRA –puttingmoney in and forgetting about it. It’s not enough to simply have money in an IRA. You’ll need to invest it.