It's a new year and the time of year when you want to make resolutions about your personal life, business life, and finances. It is the perfect time for couples to get together and set their own financial goals for the upcoming year. Need a few ideas to get started? Below are a few resolutions worth taking into consideration.
Be More Open With Your Money Discussions
Talking about finances may be difficult even when you're talking with a loved one, but being open and honest about it is crucial for a healthy relationship. By laying everything out on the table, you may avoid any surprises down the road that may lead to relationship strain.1
Start Saving or Increase Your Savings for Retirement
Even if your retirement years seem a long way off, the earlier you save, the more you are likely to accumulate by the time you retire. If you are both working, look at your company's 401k and see if it is wise to invest more in one than the other based on employer matching. You also may want to use this time to consider other savings vessels that will help you have a more diverse financial portfolio.2
Pay Down Your Debt
The first of the year is the ideal time to make a plan to pay down or pay off your debt. Start by providing a clear picture of your current debt, along with how much each month you are paying on it. Start with the highest-interest debt first to save money, which may be used to pay down your debt further.1
Create a Realistic Budget That You Will Stick To
If you already have a budget, the new year may be the perfect time to review it. If you don’t, now is the time to get one laid out. Start by gathering all of your monthly bills as well as the total of your debt. Determine how much you will need for the most necessary items, then determine how much money you are able to put in savings and use to pay down debt. Make sure that you have enough steady income coming in to stick to the budget, and if the budget is too tight, you may need to consider other income options or ways to cut costs.2
Beef Up Your Emergency Fund
Emergencies come when it is least convenient, and if you are not prepared for them, you may quickly derail your budget and savings plan. Make sure you put money away each month into an emergency fund until you get three to six months' worth of expenses built up. Once you get that, replenish the funds as they are used.2
Once you have an accurate picture of your finances and financial goals, the next step is to contact a financial professional to develop a plan to set you toward your couple's financial goals.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing.
All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.
This article was prepared by WriterAccess.
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17 “Money Resolutions Every Couple Should Make” ..., Allwomenstalk.com, https://money.allwomenstalk.com/money-resolutions-every-couple-should-make/
2 “10 financial New Year’s resolutions to set now and achieve in the new year, CNBC, https://www.cnbc.com/select/financial-new-years-resolutions/