Money moves everyone should make in 2015

DECEMBER 28, 2014 BY AGENCY REPORT

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The end of the year is finally on its way, and you know
what that means: It’s time to reflect on how your
financial goals and dreams panned out in 2014. Did
everything go as planned?
If you’re like most people, many of your financial
aspirations simply fell to the wayside as the year
progressed. Still, if you hope to make a positive financial
change in 2015, you’re not alone. A recent study from
Fidelity found that 54 per cent of Americans say they
consider financial resolutions.
Whether you’re happy with the direction you’re headed
or not, nearly everyone has some room for improvement.
Fortunately, the dawning of the brand new year can
serve as an opportunity for a fresh start when it comes
to your financial goals. Here are five financial moves
everyone should consider making in 2015:
Raise your standards (and your savings rate) . According
to the Fidelity 2014 New Year Financial Resolutions
Study, which surveyed over 2,000 adults ages 18 and
older, the biggest financial goals for Americans
consistently involve saving more money. And it’s easy to
see why. Having more money saved and invested could
lead to increased financial security, the ability to
weather financial storms and even the privilege to retire
earlier than planned. No matter your financial situation,
raising your savings rate is always a noble goal — and
one worth exploring.
Leave debt behind. For most people, 2015 will be
brighter and more prosperous if they can leave their
debts behind for good. If becoming debt-free is one of
your goals, start by taking a hard look at your monthly
spending and seeing if there are any obvious expenses
you can cut. Look for the low-hanging fruit — how much
money you’re spending at restaurants, for example, or
how much money you’re shelling out for entertainment.
Look for places you can save, and throw any extra
money you can find toward your debts until they’re gone
for good.
Revisit your retirement plans. A recent study from
Bankrate found that 36 per cent of Americans aren’t
saving for retirement at all. So if you’re saving for
retirement in any sort of capacity, you’re already ahead
of the game.
Still, it might not be enough. If you save for retirement
in a work-sponsored 401(k) plan, start by making sure
you’re saving at least enough to get your full company
match. After that, push your retirement saving
percentage upward as far as it can go — just until it
feels uncomfortable. Save, save and keep saving. One
day you’ll be glad you did.
Create a monthly budget. A monthly budget is the
cornerstone of any successful financial plan. Why?
Because having a budget forces you to plan how you
spend your hard-earned dollars — before they
accidentally spend themselves. To get started, sit down
and list your monthly expenses and compare it against
your monthly income. Create reasonable spending limits
for the categories that cost you the most — things like
groceries, entertainment and transportation. Explore any
areas where you might be able to save, and make plans
to do just that.
Start an emergency fund. If you don’t have an
emergency fund, you’re already at a disadvantage.
Because as we all know, life happens: cars break down,
furnaces quit working and surprise medical bills
materialize when we least expect them to. Having an
emergency fund with three to six months worth of
expenses can protect you from falling victim to life’s
uncertainties. So when life happens, you’re prepared.
The end of 2014 can be much more than that; it can also
be a new beginning — a time to think about what you
really want out of life and create actionable goals to
help you get there. So craft your goals wisely and set
yourself up for a year of success. Meanwhile, don’t let
last year’s failures continue into the newyear and
beyond — the past should stay there.
Make the right moves, and you could end the year in a
much better place than where you started, but only if
you keep moving forward.

Source: usnews.com