RALEIGH -- Each year, people around the world make new year's resolutions to lose weight, get back in the gym, spend more time with family, save money and get out of debt. But the later is often difficult a resolution many people don't keep. Financial planners say that doesn't need to be the case if you follow some very simple steps.
Spectrum News anchor Caroline Blair sat down with CFP and Steward Wealth Management Founder, Brant Spesshardt, for some simple and practical tips to help you keep your financial resolutions:
1. Make a budget and stick to it
a. Be realistic and honest with the budget
b. Include your family in the process
c. Build in some rewards for achieving goals
d. Live on cash
e. Learn to say NO
2. Make sales and coupons count
a. Small amounts add up - $ .50 here and there quickly become tens and hundreds of dollars.
b. If you are able to use a coupon or sales to purchase something for less than you budgeted, the amount you save should go into your emergency fund account or be used to pay down your debt.
i. Most grocery store receipts total these saving for you so you can easily track the amount.
c. Don’t use sales or coupons to buy something that is not part of your budget.
i. Just because something is a good deal does not make it something you can afford.
ii. A good deal is never an excuse to use a credit card or create debt.
iii. If you really want something, save for it and once you have the money saved up, then look for the best deal or price.
3. Bank your tax refund and/or tax savings
a. According to the IRS, in Fiscal Year 2016, the average individual income tax refund was about $3,050. The new tax reform bill may even increase this amount.
i. For many people, having an extra $200 each month in their pocket would be a lot more helpful than a lump-sum check once a year.
1. Consider filing a new W-4 with your employer to adjust your withholding amount to more accurately reflect your true tax liability.
2. If your employer offers direct deposit, consider splitting your paycheck between two accounts
a. Have the amount you have been getting as your take home pay deposited in your regular account
b. Place the extra tax saving amount in a separate account as your emergency fund, or to use specifically to pay off debt.
i. If you are getting a tax refund for 2017, don’t blow it, snowball it.
1. Pay off a debt.
2. It is important to remember that every time you get rid of a $30, $50 or $100 monthly payment, you actually give yourself a raise by that amount.
Disclaimer:
The information being provided is strictly as a courtesy.
Although the information has been gathered from sources believed to be reliable, it cannot be guaranteed. This information is not intended to be a substitute for specific individualized tax or legal advice. Neither FSC Securities Corporation, Steward Wealth Strategies, nor its registered representatives, offer tax or legal advice. As with all matters of a tax or legal nature, you should consult with your tax or legal counsel for advice.
Securities, insurance and investment advisory services offered through FSC Securities Corporation, member FINRA/SIPC and a registered investment adviser. Additional insurance services offered through Steward Wealth Strategies, not affiliated with FSC Securities Corporation.
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