It’s a New Year, which means it’s time for New Year’s resolutions. You might be thinking about losing weight, spending more time with friends and family or picking up a new hobby. As you’re looking at New Year’s resolutions this year, you may also want to consider making some around your retirement savings.
This can be especially true if you’re part of the 64 percent of the population who are worried about not having enough money to fund retirement.1 It’s easy to get off track when it comes to saving for retirement. Things like raising kids, home repairs and medical expenses can all produce hurdles that may seem like more pressing issues.
The good news is that it’s never too late to get back on track. Below are a few resolutions to consider in 2017:
Create and use a budget.Using a budget is a wonderful way to help you get a handle on your income and expenses. Without a budget, it can be extremely difficult to get your savings back on track. Despite the value of a household budget, two-thirds of Americans still don’t use one.2
With a budget, you can classify your mandatory and non-mandatory expenses. It can help you see where your money goes so you can make changes quickly. It also serves as a good tool to help you quickly see whether you’re sticking to your spending and savings plan. If you haven’t used a budget in the past, consider making it a resolution for 2017.
Take control of your debt.
Debt is not necessarily a bad thing. In fact, it serves a very necessary purpose in many transactions, such as buying a home or a car. But debt can be a bad thing if you misuse it and let it take over your finances.
If you have significant high-interest debt, make 2017 the year that you finally get it under control. The money you pay in interest could be better used to save for retirement. Call your credit card companies and request a lower interest rate. Consider consolidating debt into a low-interest vehicle like a home equity line of credit. And think about dramatically cutting back on expenses so you can pay down debt faster.
Have an emergency plan.
Life is unpredictable, and emergencies can pop up at any time. When an emergency arises, it could throw your entire financial plan into chaos. You may have to pause saving to pay for the emergency costs, or you may even need to pull money from your retirement accounts.
You can avoid these outcomes by planning ahead. Home insurance, long-term care insurance and disability insurance are all things that can help you develop a plan for emergencies. Outside of insurance, you could also consider building up your own personal funds for unexpected life circumstances. Whatever your situation, New Year’s is a good time to review potential risks and make sure you are protected.
Ready to get your retirement planning back on track? Let’s talk about it. Contact us at Gregory Financial Group to learn more. We welcome the opportunity to help you examine your needs and develop a strategy. Let’s connect soon and start the conversation.
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