The new year is finally here. Now is the perfect opportunity to get your finances in order. There are many steps you can take to become or stay financially fit in the new year. We outlined some of our favorite ones.
Make a Budget
Budgets are a fantastic way to control your expenses. However, a mistake that a lot of people make is creating too strict of a budget. Creating a budget that you have to really work towards is great, until you can’t make the budget work one week. Instead of getting discouraged and giving up on your budget, make a second one. The first one will be your reach, goal budget. The second one will be your realistic budget that you know you can meet. Try using a free budget calculator
to help get your expenses correct.
Protect Your New Tech
A great way to stick to your budget is by protecting the expensive electronic devices that you use every day. For example, repairing a broken phone can set you back $424. That’s enough to seriously screw up a budget. By protecting your tech
with Upsie, you will save hundreds of dollars when your smartphone, smartwatch, laptop or other tech breaks. Upsie deductible prices are also low, which makes Upsie
a much better warranty option than cell phone carrier or big box store warranties.
Plan Out Major Expenses
Are you planning on taking a vacation in 2020? How about replacing that washing machine that has been making a funny sound? Start saving now! Figure out how much those expenses will cost, how much you can save before they occur, and how much you can afford during. If you have to put some of the expense on a credit card, how quickly can you pay it off? Luckily, having Upsie will save you from any tech-related expense. And, when you get that new washing machine, you can protect it with Upsie
Contribute to an IRA or Check Your 401K
The beginning of the year is the perfect time to make a contribution to your IRA. In 2020, you can contribute $6,000 to your IRA, or $7,000 if you’re over the age of 50. Additionally, if you made a contribution in 2019, check if your contribution is tax deductible
On the other hand, if you have a 401K through your employer, check your contributions. If your employer matches a certain amount, make sure you are contributing enough to get the full match. Also, if you are only contributing 5-6%, take a look at your new budget. Can you make any adjustments to up the percent by a couple points? It might seem like a lot now, but you will thank yourself in the future when that compound interest adds up! 10% is a great goal amount, but only if you can afford it.
Best of luck staying financially fit in 2020 and beyond!
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