What Are Your 2020 Financial Resolutions?

January 8, 2020
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2020 is finally upon us! Not only are we in a new year, but we’re kicking off a brand new decade. Now is the time most of us try to make some New Year’s Resolutions. Eat healthier, lose weight, volunteer more time, spend more time with family, etc.—these are all good goals to go after as long as you actually stick with your resolutions.

One area people often overlook, however, is their finances. Beyond just personal and social resolutions, maybe now is the time you should really take a deep look at your financial situation and start making some positive changes. These are real adjustments you can make that will impact the rest of your life, and you just might find that you can stick with your financial resolutions for 2020 and beyond.

Here are a few key steps you can take in setting your New Year’s financial resolutions, according to Illumination Wealth:

1. Be Honest with Yourself

A lot of us try to ignore our financial issues because we really don’t want to think about them. Take a good, hard look at your financial situation and ask yourself some of the following questions to see where you are.

  • Have you racked up too much debt?
  • Are you spending too much on things you don’t need?
  • Is your income where you want it to be?
  • Do you have a good retirement savings plan in place?
  • Are you investing and saving as much as you’d like?
  • What will you be leaving behind for your heirs?

2. Define Your Financial Goals

Knowing where you are now can help you determine where you want to be. It’s time to start defining your personal financial goals. Figure out where you want to be in 5, 10 or even 20 years. What does your ideal life look like? Think about what it will take to retire early and achieve your own sense of financial independence. Dream as big as you want. Some goals may be more practical while others are more wild. The point is don’t limit yourself too much when dreaming about your ideal future.

3. Start Planning

You won’t reach all your financial goals overnight. It takes a solid plan. Consider hiring a financial advisor to provide objective guidance and personal support as you put together a feasible financial plan. Figure out the tangible steps it will take to get you from where you are now to where you hope to be. A good tip is to start small with what you can realistically achieve in the next few months or over the course of this year. Then, you can build from there.

4. Take the Steps Toward a Brighter Financial Future

Once you have a plan in place, you can start applying changes and working on your goals one step at a time. Trying to bite off too much right away is usually the reason why most of us cannot stick to our New Year’s Resolutions. Living a healthier life is a marathon, not a sprint. The same is even more true with finances. It will take time and effort to reach your goals and keep improving your financial situation. Be patient and be smart with your decisions and positive things will happen.

5. Check in on Your Progress

Lastly, you need to check in on your progress periodically. Again, this is where having a dedicated financial advisor on your side will make a huge difference. You will want schedule financial reviews where you go back to step 1 above with a full audit of your financial situation. Celebrate the good things that you have achieved and look for other areas where you still need improvement. This will keep you moving in the right direction toward reaching your long-term financial goals. It’s all about staying on track, while making continuous adjustments along the way as other things change in your life.

These are a few of the key steps you can take as you set your New Year’s financial resolutions and begin to develop a better plan for your financial future.

For help with your financial planning, retirement savings, investment strategy and wealth management, contact Illumination Wealth today. Let us help you achieve your financial dreams!