The start of a new year is a great time to make impactful changes to your life. When most people create their yearly resolutions list, their goals, usually consist of getting in shape, learning to cook, or picking up a new hobby. While their personal goals are great, it’s important that you also consider setting financial goals as well with the help of financial advisors in Massachusetts.
To help you set some goals for your finances, we’ve listed the top 5 financial resolutions you should consider making for the new year.
Is Budgeting Not Your Thing? Create A Spending Plan Instead
Budgeting can be difficult. Oftentimes it can seem limiting and restrictive. Instead, consider creating a spending plan.
A spending plan gives you the freedom to determine what you can spend your money on. Start by writing down your fixed monthly income. From there, include all of your expenses and order them by their importance. Once you have this list, you’ll be able to see how much money you have leftover that can be allocated into more personal categories. Do you want to spend your extra money on clothes and hobbies, or would you rather invest it? It’s up to you!
Automate Your Savings
This can be one of the easiest ways to grow your savings. By automating money into your savings account, you won’t have to worry about how much you’re saving. Each month you’ll be setting aside a standard amount that will benefit you long term as your account continues to grow.
Most companies offer the ability to allocate your paychecks into different accounts. If you’re a freelance or gig worker, you can set up a separate savings account and automake transfers into that account.
Whichever option you decide, automating payments into a savings account is necessary to establish long term wealth for your retirement. For more details about automated savings, you should seek help from investment advisors in US.
Reassess Your Portfolio
Reassessing your portfolio is a strategy that all investors should practice.
To do this, first consider how you would like to allocate your investments. Are most of your investments in companies, bonds, or mutual funds? Create a target allocation strategy based on how much money you would like to allocate into each type of security.
Throughout the year, refer back to this as your portfolio changes.
Boost Your Credit Score
Having a good credit score is everything. Good credit is oftentimes the difference maker when applying for a loan.
Generally, a good credit score is somewhere between 660-780, but numbers can vary depending on the scoring metrics that are used.
Stick to these basic rules when trying to boost your credit score:
- Pay your bills on time
- Don’t close out old accounts
- Pay off debt and keep your balances low
Start A Side Hustle
According to top investment advisors having multiple streams of income is the safest way to maintain financial stability.
Freelance work and hobbies can serve as reliable sources of income. Do you have a design background or are you social media savvy? Consider offering your services part-time to local businesses that could use your unique skills.
Other examples of side hustles:
- Selling items on eBay such as old collectables
- Offering your freelance services on websites like Fiverr
- Driving for Uber
- Delivering for Postmates
Increasing your streams of revenue allows you to be less dependent on one source of income. Not only will this make you more money, but it can also protect you in the event that you lose your primary job.