RALEIGH, N.C. -- The new year is here and many of us are making resolutions to get in shape, sleep a little more, eat healthier or maybe even save some extra cash. Financial planners say being mindful with our money, can easily help other aspects of our daily lives.
- A recent survey shows one in five Americans don’t save any of their annual income, which will likely cause them headaches down the road
- A good rule of thumb is to contribute 10-15 percent of your income to your employer-sponsored 401(k) or other retirement accounts
- Meet with a financial professional if you have any questions, quite often they are willing and able to help keep you on track
Alex Sutherland, Investment Advisor and President of LifePlan Group, breaks down the four easy ways we can stay “Mindful with our Money in 2019”. Sutherland says we need to pay attention to our thoughts and actions, resolving to be aware and stay on top of our finances in 2019.
There are four easy ways to do that:
- starting with saving with a purpose
- banning the word budget
- knowing your financial options
- practicing emotional awareness
Not only do we need the be mindful of our savings, but we also need to save with a purpose. Sutherland says a recent survey shows one in five Americans don’t save any of their annual income, which will likely cause them headaches down the road.
Most of us want to retire at some point, but if we actually picture it, financial experts say you will spend your days inspired to work harder to achieve it. A good rule of thumb is to contribute 10-15 percent of your income to your employer-sponsored 401(k) or other retirement accounts.
Write down all your fixed expenses like mortgage and car payments. Then add a savings line along with variable expenses like groceries, gasoline and utilities. Finally, total those expenses and compare them to your income. That plan will need to be evaluated regularly as major income changes can either raise or lower that number.
Sutherland says knowing your financial options is also key when planning for your future. For example, there are more than 500 ways to claim Social Security benefits, multiple Medicare options and several different types of college savings plans to choose from. Doing research and speaking with a financial planner about your financial goals is important to help you plan.
Finally, practicing emotional awareness is essential according to Sutherland. If you're stressed, don’t make big purchases or decisions on in the market. If there is turbulence on Wall Street, speak with a financial professional before making a hasty decision.
Meet with a financial professional if you have any questions, quite often they are willing and able to help keep you on track.
Visit LifePlan Group for more financial tips.