Resolve to Be Fiscally Fit in 2021

by Jason Vitucci, CFP^®

Just like the common vow to commit to exercise and healthier eating choices as a New Year’s resolution, it’s also a good idea to take stock of your financial situation and include some fiscal goals. Taking a good look into your overall savings plan, any wasteful spending, and your total debt can help you begin to get your financial health in tip-top shape for the year ahead and many more to come.

Here’s a list of five valuable exercises you can do to make sure you’re closer to where you want to be financially by this time next year.

1. Cut wasteful spending.

This may seem like an obvious choice but for many, it can be a hard one. Creating a realistic budget and sticking as best you can will help you limit unnecessary spending.

2. Create a cushion in your savings.

After you establish your budget, it is important to save more for emergency expenses, you can do this by using automatic transfers or savings platforms. These transfers make saving easy because you don’t have to think about it.

3. Get a handle on credit card debt.

If you have multiple credit cards, you may want to consolidate to one or two cards. Start by transferring your multiple balances to the credit card with the lowest interest rate. Then, challenge yourself to lower these balances by spending only cash on everything you purchase for an entire month and see how it affects your spending habits. Additionally, it is a good idea to set a goal for paying down the debt on your credit cards as they often have high interest rates.

4. Try to save the maximum amount in retirement plans.

It is important to have your retirement plans as a consideration for your savings plan each year, this will help your retirement goals remain on track.  It is a good idea to look into any match provided by a company plan to ensure that you at least contribute enough each year to receive the maximum matching benefit provided.  Even if there is no match, saving in a retirement account will defer any taxes on that income and possibly allow you to save a little more than you could in a taxable account.

5. Protect your estate.

If you don’t have an estate plan, now is the time to create one. If you already have one, now may be the time to make sure it’s up to date. Life changes can alter your estate wishes and should be addressed as they happen to ensure that you’re always prepared.

Make financial wellness a resolution this year with these five tips.

Give our office a call if you'd like to discuss any of these financial exercises. As a valued 1st Nor Cal member, we welcome you to contact us for a complimentary financial analysis. All meetings are currently being held by phone or screen share as our office remains closed to in-person meetings for now.

We have webinars posted to our website along with other financial education information, and we welcome you to view them. We will be hosting a new series of webinars in 2021, so be on the lookout for those. For more information about our practice, please visit our website at www.vitucciintegratedplanning.com.