Over the last several days, we’ve heard many stories in the media about New Year’s Resolutions being made and abandoned. It seems the most commonly broken promises – you might say selfies – are weight loss, quitting smoking, learning something new and eating healthier. Financial resolutions are not usually high on anyone’s list, in fact most people spend less than 20 minutes a year, yes, a year, looking at their retirement accounts.
Having just concluded our annual Strategic Planning process, we know that goal setting is important to our success. Each goal was debated, clearly articulated and importantly, broken down to bite-size, measurable pieces.
The same should hold true for personal goal setting; your annual Resolutions. Here are a couple of important financial goals you should consider in 2014:
1.) Pay-off high cost debt. For most people, these are usually credit card balances that never seem to be reduced by a monthly minimum payment.
2.) Build an emergency fund. This is a topic I have written about in the past. Having a 3-6 month “cushion” of cash in your savings helps mitigate any uncertainty in your financial future.
3.) Bulk up your retirement savings. The financial markets were extraordinarily kind to us this year and hopefully, to your 401-(k). Put away as much as you can afford to help secure your financial future.
Think about any one of these for yourself and set a specific goal that is “actionable.” For example, take advantage of First County Bank’s automatic balance transfer program and set aside say, $25 per week into a savings account until you have reached your emergency fund objective.
I know this is easier said than done but start somewhere. Have a Great 2014!!