Some of the most common New Year’s resolutions involve improving one’s physical health through diet and exercise, cutting out bad habits, and losing weight. Other popular New Year’s resolutions involve improving one’s financial health, getting finances in order, and eliminating debt.
Credit card debt, medical expenses, and the rising cost of living is weighing on many South Florida residents, causing more to fall behind on their monthly bills.
Today marks the first day of 2013 and for many this is a time for making New Year’s resolutions. For some people, the resolution might be to improve their health or stop smoking, but for many this marks a time to make financial resolutions. To get your economic house in order, begin with these seven mantras:
1.) Start an emergency fund: Only one in four American households have an adequate emergency savings cushion. It’s recommended that the money be taken directly out of your paycheck or checking account so you will never miss it. The first priority should be building up three to six months’ worth of expenses in an emergency fund.
2.) Stop paying bank fees: As most people are aware, banks are trying to make up for lost revenue, so they charge on everything from monthly maintenance to overdraft protection. A May, 2012 Pew study reported that the average overdraft fee is $35, and said big banks charge an average of $117 per year. Opt for an online bank, a community bank, or a credit union—the only place you will find hassle-free, no-fee checking.
3.) Save for retirement: Whether you are 25 or 45, most people are not saving enough for retirement. Since the retirement contribution limits for IRA’s and workplace retirement programs both increase in 2013, there is room for everybody to save more for retirement this year than they did last year.
4.) Pay off your debt: According to a recent study by CardHub, credit card debt hovers around $6,700 per household. This does not include debt that people have defaulted on but are still responsible for. Pay down high-interest credit cards first, as less of the dollar will be going toward interest and more to the principal.
5.) Make a budget: People often shy away from this because they find it trivial or tedious, but it’s a necessity and will help you decipher between luxuries and necessities in your spending habits.
6.) Build your credit score: This is important, because the better your credit the more you can take advantage of rewards and zero percent introductory interest rates.
7.) Talk about money with your partner/family: Most people shy away from this because it can be uncomfortable. But it doesn’t have to be. Check in with your family members to see what plans they have in place to protect their heirs and assets. Make sure that your family is provided for in the unlikely event that you are injured.
To read more on this topic visit: http://abcnews.go.com/Business/top-financial-resolutions-2013/story?id=18026466
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia, P.A. at www.miamibankruptcy.com.
