The New Year is upon us, Washington D.C.! As everyone decides on what their New Year’s resolution is going to be, consider taking a long look at your finances. Some of the major financial goals people focus on at the beginning of a new year are personal finances, saving and investing. If you are seeking financial independence, you should follow these tips to ring in the new year the right way.
- It starts with assessing where you are currently. Before you can commit to any new goals, you need to figure out what your baseline is. Look at your savings, debts and investments. While this may seem like a stressful thing to do at the beginning of a new year, it is important to do so that you can set realistic financial goals for 2018.
- Budgeting is key! Now that you have an idea of where you currently stand, you should figure out what your monthly income and expenses are and determine the best way to spend your money.
- Deal with the debt! Are you finding yourself constantly under pressure due to loans, credit cards, etc.? Consider punching a hole in that debt. The interest is only going to make it more expensive in the long run. By paying attention to current debts, you can ensure that the money you would have spent on interest can go toward something better, like new investments.
- Stay organized! Making a budget is half the battle. Sticking to it is an entirely different ball game. Consider downloading a budgeting app on your phone to make sure you don’t break the bank.
- Establish an emergency fund. Life is unpredictable. You should try to put some money aside just in case things go awry. Try to put two to three months of expenses aside.
Happy New Year, Washington, D.C.! Follow our blog to stay up to date on financial news and tips.