Financial Tips For 2020

by Payday Tree Finance Analyst
Let’s welcome 2020 with new financial goals and new financial resolutions to improve your credit score, to pay off your debts and also to save more money for your retirement.

1.    Save More

The top resolution for 2020 has to be saving more money. There are many ways to do so like increasing your 401(k) share, setting up automatic transfers to your savings account, cutting back on unnecessary expenses and more.

2.    Develop A Good Credit Score

If you have a credit score of below 700, make it a point to improve your credit score in 2020. There are several ways to build a good credit score such as paying your bills on time, curbing your expenses, limiting to having new accounts, diminish the use of credit cards, etc. The higher the credit score, the higher are the chances to get best loan deal.

3.    Create A Budget And Stick To It

The purpose of creating a budget is to track your spending. This is a helpful tool that will make you understand where your money goes each month. By sticking t your budget, you can able to understand how much you can afford to spend each on the necessary expenses and where you can cut back on unnecessary expenses.

4.    Pay Off Your Entire Credit Card Bills

In 2020 just make sure that you pay your credit card debts by the due date. It is good to be debt free in the New Year.

5.    Try Not To Open Any New Credit Card

While there is no fixed rule for how many credit cards you should have, the average cards can be four. It all depends on how well you can manage your credit cards. It is important to stop relying on your credit cards for all your purchases. So, it is better to avoid applying for any new credit card.

6.    Keep Checking Your Credit Report

It is important to regularly check your credit report to ensure the correct information is reported to the credit agencies and also to avoid any fraud.

7.    Start Investing Early

Start investing money as soon as you get your first paycheck. Read various articles, blogs and check out other sources to know how to invest your money and also to find right investment plans for you.

8.    Develop Financial Goals

Identify your financial goals and work towards achieving them. Start accomplishing your short term financial goals and then move towards achieving middle to long term financial goals. You also need to set a timeline for achieving your financial goals.

9.    Invest Your Money Smartly And Not Randomly

Investment is an important decision. So, you should invest according to your financial goal based investment theory and not randomly.

10.     Separate Your Needs From Your Wants

In this New Year you should start analyzing your spending pattern more carefully according to your needs and wants. If you find out that you are spending excessively on your wants then cut them down as soon as possible.

11.     Make Risk With A Calculated Risk And Patience

If you want to grow it is important to take risks. Consider share market seriously and make fortune of it as it will help you to fetch great returns in the future.

12.     Avoid Buying A Home At A Very Early Stage Of Your Career

Everyone wishes to buy a new home. It is considered to be the most common and important financial goal of one’s life. But it is suggested that one should refrain from buying a house at a very early stage of your career and committing yourself to huge EMI. So, first have some base of financial liquid assets and then start thinking of buying any physical asset.

13.     Have An Insurance Plan

It is important to have an insurance cover for a healthy and secure financial future. Do not mix investments and insurance together. Buy adequate health for yourself and for your family.

14.     Stay Away From Wrong Financial Advice

Everyone has something or other to say to you. Do not blindly follow investment advice of your friends, colleagues or family. Things that have worked for them may not work for you in the same way. Make a customized financial and investment plan for yourself as per your risk and requirement.

15.     Give Importance To Retirement Planning

Saving for retirement can be a great step to have a blissful and healthy future. Learn to prioritize your life goals. Retirement savings has to be your primary plan and you should start doing it as early as you can and saving for vacations, child’s education should be your secondary financial goals.

16.     Beware Of Proxy Investment Scheme

Avoid the greed of earning extra return by investing in a proxy investment plan. You can avoid this mistake by researching and investing your hard earned money in reputed legal trusted financial products.

17.     Enhance Your Understanding

It is always better to educate yourself before investing in any investment scheme. Analyze the pros and cons, features and characteristics of the financial products before investing.

18.     Consider Extra Source Of Income In 2020

 If you want to accomplish your financial goals and want to grow your income in 2020, you should consider multiple sources of income and do not rely only on your single stream of income. Make money work for you to earn more money.

19.     Do Not Overuse Your Credit Cards

Take a pledge this year not to use credit cards beyond your capacity. Try your best to pay full amount due instead of paying minimum amount every month as revolving credit is the most expensive form of debt.

20.     Review What You Spent In 2019

To figure out the areas of improvement in money management or where you want to go in 2020, you need to review your spending and investments you did last year. Go through your credit card and bank statements for 2019 and ask yourself how much you spent on necessities, how much you wasted your money on wants and how much you have saved. Analyze your spending patterns and set concrete budget figures.

21.     Set Clear And Flexible Goals

Have an idea about what you want to accomplish and in what time frame. Don’t be too hard on yourself and make noticeable progress towards completing your financial goals.

22.     Get Inspired

Get inspired with your finances and try to save more money by cutting back on your spending. Try to cook your own meals and coffee at home to save much of your hard earned money. Check out Internet for DIY activities and take tips from various articles and blogs on how to manage your finances.

23.     Gain Perspective By Writing Everything Down

Track everything in writing that can help you to gain perspective. Write down your likes, dislikes, to-do list and most important track your finances. This would help you to know where your money is going.

24.     Know About Different Types Of Investment Tools

Ahead of making an investment you should know about the different types of investment tools like Fixed Deposits, Bonds, Stocks, Mutual Funds, Gold, etc. Also learn about the level of security, risk and returns provided by each and every instrument.

25.     Build An Emergency Fund

Reserve a part of your income to cover unexpected financial requirements. Emergency can pop at any time in anyone’s life. Having an emergency fund would help you to deal with difficult times in a great way.

26.     Increase The Match In Your Employer’s Retirement Plan

If you are fortunate to have an employer that matches your contributions, then try to contribute at least enough to get that full match.

27.     Pay Out High Interest Debt First

If you have debt with high interest rate, you can able to save more money by paying down the entire debt on time.

28.     Protect Your Credit

Set up your bills on auto pay to avoid missed payments. Just make sure to check your credit report for free every year and solve any errors you may find.

29.     Run A Retirement Estimator

Calculate how much you need to save to fulfill your retirement goals. This would let you know whether you are on right track to hit your retirement goals or if not, what you can do to reach them.

30.     Save For Education Expenses

Calculate how much you have to save for your child’s education. Make sure that your retirement saving is on track first and then you should concentrate on saving for child’s education.

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About Payday Tree Freshman   Finance Analyst

4 connections, 0 recommendations, 27 honor points.
Joined APSense since, December 16th, 2019, From Clermont, Canada.

Created on Jan 10th 2020 03:37. Viewed 430 times.


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