How to Get Control of Your Finances in 2020
Updated on Dec 09 2019
2020 is here! With a new year comes new goals, new resolutions and new possibilities. Along with weight loss and eating healthier, getting control of finances and financial planning are among the most popular resolutions.
The New Year brings new financial possibilities and opportunities. But how do you start taking control of finances to prepare for your future? Here are five top steps.
5 Steps to Managing Finances in 2020
The new year is here! It’s time to let go of the past and look forward to the future. What do you want your retirement to look like? Will you prioritize retirement planning this year? Whatever financial resolutions you have made, financial planning is the first step to achieving it. Make this year a new beginning for financial freedom with these 5 steps to managing your finances.
1. Plan your future.
You are looking ahead to a new chapter in your life. This is the year you promised yourself and your family to get serious about your retirement. This may mean reorganizing finances and rethinking spending and savings. To start, write your goals down and then create subgoals to make those big goals a little less intimidating.
2. Complete a financial assessment.
Now that you know where you want to go, you need to know where you are. What do your current finances really look like? Take a financial inventory of your debt and your assets to have a realistic picture of your current finances. Include any mortgage debt, car debt, credit card debt, and student loans while also looking at what you own and what you have saved thus far.
3. Examine your current budget.
Take the time to go through your current expenses. This can help you gain a more accurate financial assessment and help you understand where exactly your money is going. What does your lifestyle currently look like? Where can you cut back to contribute more to financial planning?
4. Evaluate financial support of dependents.
We enjoy taking care of the people we care about and we want to support them in any way we can - even financially. However, supporting adult children and grandchildren can be harmful to your financial health. Overextending yourself financially in the support of others can lead to family tension and conflict. Be honest and open with others about your boundaries and set expectations to protect your own financial health.
5. Plan a step-by-step transition into retirement.
Put pen to paper and plan out how much you want to save each year leading up to retirement and how you will do it, including any investments. Talk your plan over with your spouse or partner and then stick to it. Do not take money out of your retirement account. Safeguard your earnings and contribute according to your plan.
6. Enlist the help of a fiduciary financial advisor.
Contact a fiduciary financial advisor who can help you achieve your retirement goals. A fiduciary financial advisor is legally obligated to put your interests ahead of his or her own - even if those interests are in conflict. A fiduciary financial advisor is crucial to getting control of your finances and he or she will be able to identify problem areas or missed opportunities that you may have overlooked. They can also help you complete a financial assessment while setting realistic retirement goals, ensuring financial planning success.
How will you get control of your finances in 2020? If you are committed to preparing for your financial future, contact a financial advisor to get started.
Find an Advisor Near You
Advisors by City
Find advisors located in the cities nearest you.
Need a financial advisor?
100% free consumer service