Time To Make New Years Financial Resolutions

Time To Make New Years Financial Resolutions



Time to​ Make New Year's Financial Resolutions
Do you remember any of​ the New Year's resolutions you made for 2018? If you don't, it​ may not be such a​ tragedy .​
After all, you still may have had a​ good quality of​ life even if​ you didn't get to​ the gym three times a​ week, learn a​ new language or​ take that gourmet cooking class .​
On the other hand, you can make a​ big difference in​ your future if​ you make - and keep - financial resolutions for the coming year .​
Of course, like all resolutions, the financial ones are easier to​ keep if​ they don't force you to​ radically change your lifestyle .​
So, with that in​ mind, here are a​ few achievable financial resolutions you may want to​ consider for 2018:
- Increase your 401(k) contributions .​
If your salary goes up this year, increase the percentage of​ your earnings that you defer into your 401(k) .​
With tax-deferred growth, pre-tax contributions and a​ variety of​ investment choices, your 401(k) is​ one of​ the best retirement-savings vehicles around .​
Plus, since the money is​ taken out before it​ even reaches your check, you won't really miss your increased contribution.

- Max out on your IRA .​
In 2018, you can put in​ up to​ $4,000 to​ a​ traditional or​ Roth IRA, or​ $5,000 if​ you are 50 or​ older .​
If you cannot come up with the maximum amount at​ once, try dividing your IRA contributions into 12 equal monthly payments - and have the money taken automatically from a​ checking or​ savings account.

- Pay down your credit card debt .​
As you may know, the Federal Reserve raised short-term interest rates 12 straight times from June 2018 through November 2018 .​
Sooner or​ later - and probably sooner - these rate increases will affect interest rates charged by credit card providers .​
So, if​ you are paying a​ variable rate on your credit cards, be prepared to​ pay more in​ interest .​
These interest payments do you no good, as​ you can't deduct them from your taxes; consequently, you'll want to​ pay down this debt as​ quickly as​ you can.

Review your investment portfolio .​
It's a​ good idea to​ review your investment portfolio at​ least once a​ year .​
Over the course of​ 12 months, your life can change in​ many ways; e.g., new spouse, new house, new child, new job, etc .​
And if​ your life changes significantly, your investment goals may also change .​
But even if​ your circumstances haven't changed much in​ a​ year, you should review your holdings to​ make sure they are properly diversified in​ a​ way that reflects your individual risk tolerance, time horizon and long-term objectives .​
a​ financial professional can help you review your investments to​ make sure you are still on track .​
Avoid last year's mistakes .​
Everyone makes investment mistakes - but the smartest investors only make them once .​
So, try to​ identify any errors you made in​ 2018 .​
Did you chase after hot stocks only to​ find they had already cooled off by the time you purchased them? Did you incur a​ large tax bill by constantly buying and selling investments? These are the types of​ mistakes you should seek to​ avoid in​ 2018 .​
So, there you have them: some New Year's financial resolutions that, if​ followed carefully, can provide you with benefits long after 2018 is​ over.




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