As 2013 begins, make sure to give your finances a checkup and discover if you need to make saving your New Year's resolution. You may discover that you have debt you need to pay down or that you are ready to take the next step in savings. Helping yourself and your family save successfully for the future should be near the top of your resolution list - and it's one resolution you can't afford to break! Remember, you don't have to make a lot of money to save successfully. Start Small. Think Big.
5
Resolutions to Get You Saving in the New Year
1. Get Out of Debt
The best investment most borrowers can
make is to pay off consumer debt with double-digit interest rates. How
to do it: Find places to cut your spending so that you can pay down your debts faster.
2. Save for Emergencies
Having an emergency savings fund may be
the most important difference between those who manage to stay afloat and
those who are sinking financially. In a recent survey, only 49% of families said they
had extra funds (not including lines of credit) available to pay for an
unexpected expense of $1,000. Don't find yourself
unprepared in 2013. How to do it: Save a Portion of Your Tax
Refund. Use the 30 - 40 - 30 plan. Designate 30% of your refund to pay
off debt and catch up on outstanding bills. Earmark 40% for current use.
Use 30% to jump start an emergency fund or long term savings. You can use
form 8888 to split your refund into separate accounts and buy a U.S. Savings
Bond. Bonds are a safe and easy way to save for the future.
3. Save for Retirement
Many employees turn down free money from
their employer by not signing up for a work-related retirement program
such as a 401(k) plan. If they did participate, with a dollar-for-dollar
match they would likely receive an annual yield of greater than 100% on
their investment. How to do it: Participate in a work-related
retirement program or open up a Roth IRA. Already saving?
Increase the amount you save toward retirement by 1% in 2013.
4. Make Savings Automatic
It can be hard to put aside money for
savings. But there is an easy way to save money without ever missing it - Make your savings automatic in
2013.
5. Buy a Home and Pay Off the Mortgage Before
You Retire
The largest asset of most middle-income
families is their home equity. Once these families have made their last
mortgage payment, they have far lower housing expenses. How to do it:
Almost anyone can afford to own a home with proper preparation . Develop a savings plan
to build up money for a down payment at purchase, for moving expenses, and
for post-purchase emergency expenditures such as needed home repairs.
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