Happy New Year! Many of us look to improve our health with the turning of the calendar. That health can be physical (1 in 8 new gym memberships are initiated in January!), mental, or financial.
Increase your 401(k) contribution.
Did you know that in 2019, the maximum amount you can contribute to a 401(k) goes up to $19,000? Seem unrealistic? Try increasing your contribution by 2% over your current amount. Keep doing that every year and watch the savings pile up!
Don’t have a 401(k) or other workplace plan? You can open a Roth IRA and contribute up to $6,000 per year (or $7,000 if you are aged 50 or older). If you are a small business owner, check out this helpful guide from Fidelity on the various types of accounts you can use to lower your taxes now, and have a nice nest egg at retirement. https://www.fidelity.com/retirement-ira/small-business/compare-plans
Start a vacation fund.
Is the pleasure of vacation ruined by the idea of paying back months of high interest credit card debt? Give yourself the gift of an interest-free vacation by – yep, you got it – saving ahead! That all-inclusive vacation in Mexico costs $2,000? Save $200/month by automatically having the money deducted from your checking account to a Vacation Savings Account (this is not a real thing, just a name in your mind to make it fun). In October, you will be ready for your margaritas and siestas.
Consolidate at least 2 accounts into one.
An area that leaves people feeling stressed about their finances is often plain old organization. Got 3 old retirement plans out there? Call up the 800 numbers on your statements and tell them you want to move those accounts. You can open a Rollover IRA in your own name or move the accounts to your current workplace retirement plan. Either way, you’ll have fewer statements and a more cohesive investment strategy. And, like getting rid of old clothes that don’t serve you, you will feel great about having less financial clutter.
Need help prioritizing financial health goals? Contact Kristi for a 15-minute phone consultation to see if there is a fit for working together.