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Westco Financial Group

10 Financial Resolutions to make in 2020

Have you made any resolutions for 2020 yet? Even if you haven’t, there’s still time. Here are ten financial resolutions to help you kick off the new decade on the right financial path.

  1. Track your spending: One way to keep yourself from experiencing a financial shock, is by keeping track of your spending. Begin by looking at your credit card and bank statements for the past three months and organizing the expenses by category. If you use cash, make sure to keep your receipts.
  2. Create a budget… and stick to it: Once you have successfully tracked your spending, you can now create a budget. However, a budget only works if you use it, so make sure when setting your weekly or monthly category amounts, that they’re realistic so you don’t give up.
  3. Check your insurance coverage: Now is the perfect time to make sure you have ample insurance coverage, including home, renters, auto, long term care insurance, and if your assets exceed the liability coverage you have through your policies, then also an umbrella liability policy. Call Westco Financial Group today for a quote!
  4. Build an emergency fund: One of the best places to start if you’re unsure where, is with an emergency fund. This should ideally be 3-6 months of your living expenses in case anything were to happen.
  5. Improve your credit score: Do you know what your credit score looks like? Having good credit will help you get better rates on loans, which over time leads to less interest. Some ways to help improve your credit score are by having on time payments and reducing the amount of your debt.
  6. Max out your retirement plan (or max the match from your employer): If your employer contributes to your retirement plan through a contribution match, your goal should be to try to put in the full amount (for example: 3%). This way, you aren’t missing out on free money. Then, if you’re able to, you should try to max out your retirement plan contributions for the year. Your plan representative should be able to let you know the amount for your specific type of plan.
  7. Calculate your retirement and set up a retirement plan: One thing that you should do in 2020 is calculate how much you will need for retirement and create a retirement plan. As they say, “fail to plan, plan to fail”.
  8. Pay down high interest debt: Begin paying off any debt that you have with interest rates over 5%. If your rates are higher than that, you might be able to refinance them to lower your rate, which over the long run can help to save you money.
  9. If you aren’t doing it already, begin investing: Let’s say you’re already on top of everything in numbers 1-8, well then now is the time to begin investing. Don’t just limit your investing to your retirement plan at work. Investing is a great way to save for long term goals, such as doing house renovations down the line or saving additional money for your retirement. However, make sure to work with a Certified Financial Planner so your investments reflect your risk tolerance.
  10. Treat yourself: At the end of the day if you’re too strict with yourself, you’ll never be able to keep your financial resolutions through the end of 2020. Make sure to reward yourself when you hit specific goals; go out to that restaurant you’ve been wanting to try, buy the shoes you’ve been coveting, or put money away after you hit each goal towards a vacation.

Need help with your 2020 financial goals? Call Westco Financial Group today at 516-593-5070, or fill in this form, to schedule your complimentary appointment toady! 

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