Can you believe 2020 is less than four months away? Do you know the state of your personal finances? If you need some help preparing for the New Year, then you’ve come to the right place!
I’m sure you want to be financially successful in the new year, but you might not know where to put our focus. Well, this article will give you a place to start. Below, are some tactics you can use to prepare to thrive financially in 2020. You can start doing any of these things today. So, let’s get started!
Review Your Expenses and See Where You Can Cut
It is important for you to take a detailed look at your expenses to see where your money is going each month. This information can help you answer some essential questions regarding how you can free up some of your funds. Could you cut back on takeout? Did you have a lot of seasonal expenses that you forgot to take into account? Whatever it is, see how your money was distributed this past year so you can plan for 2020.
Max Out Your Retirement Contributions
There are certain limits regarding how much you can contribute to your retirement account. This number can depend on your age when you make contributions and the type of retirement account you have. The first step is to see how much is in your retirement savings and how much it will take to max it out. Doing so can even have favorable tax implications for this year.
Create a Plan to Tackle Lagging Debt
If you still have debt to pay down, look at your balances, and see what you can do about paying it off in 2020. Look at how much you are paying each month for credit cards, student loans, and car payments. Then, review your interest rates and create a strategy for handling high-interest debt first and then managing the other debt as you go along. This is known as the avalanche method. Financial liabilities can be a huge barrier to your personal finance goals, so be sure to develop a plan to get rid of as much of it as you can in 2020.
Establish Your Savings Goals
What are your future personal finance savings goals? Do you need a down payment for a home? Are you planning a wedding? Create a list of what you are saving for, and organize the items by priority. Then determine how you want to begin meeting these goals in 2020. Also, if you have already started saving, look at your progress. Can you add more to your savings? Are you dipping into your savings frequently? Whatever your current status is, take these next few months to re-establish your savings goals and create a plan to stick to them.
Prepare for Taxes Early
No one wants to deal with the tax preparation hustle and bustle of March and early April. So, get ahead of the curve. Gather all your receipts, determine your deductions, get your proof of income, and even schedule a consultation with a tax professional. Doing this now can put you in the position to get an earlier refund while also giving you the time to discuss any issues with the IRS before they become unreachable in March.
Will Your Personal Finances be Ready for 2020?
The end of 2019 also represents the start of a new beginning in 2020. Take the financial lessons you’ve learned this year and use them to improve your financial standing in the new year. Remember to be patient with yourself, and remind yourself of why you are doing this and the outcome you hope to achieve. Feel empowered to pick a strategy above, and get started today.
I understand that managing your personal finances on your own can be tough. That’s one of the reasons I created Money Coach University. It’s designed to give you the knowledge that will empower you to improve your finances and reach your goals.
A few courses inside that might be beneficial to you are
- Better Budgeting – Secrets to Improving Cash Flow and Managing Your Finances
- Zero Debt: How to Conquer Credit Card Bills Once and For All
- Credit 101: How to Establish or Rebuild Good Credit