The meaning of resolution is “a firm decision to do or not to do something.” The key words are “firm decision”. If you make a firm decision about something then you must also take action and set a deadline, in other words, set a goal! Catherine Pulsifer
Each year millions of us make New Year resolutions and by mid-January, many have abandoned them. It really isn’t your fault since these yearly prognostications for change are hard to do unless you change your mindset.
A better way to make lasting change in your life is to reframe your resolutions into goals. Be specific and write them down. Post them on your wall for accountability. It is much easier to make changes in your life when you are reminded of them every day. If you goal is financial health, below are some of the actions most often recommended by financial advisors.
- Know where your money goes – Nobody likes to keep track of their expenses, but there are apps that can make it easy. All you do is link your checking and credit card accounts to the app and it does all the work for you. Understanding where you spend your money allows you to make educated decisions and take the steps needed to meet your financial goals.
- Establish a budget and stick with it – Now that you know where your money goes, create a realistic budget. Make sure it’s a budget you can stick with for the long term. Besides the everyday expenses and the goals listed below, be sure to build in some treats.
- Set up a rainy-day fund – Putting money aside takes some of the stress out of life’s unforeseen setbacks- losing your job, needing a new roof, unexpected medical bills, etc. A rule of thumb is putting 6 months of your living expenses in a savings account. If you can’t do that now, build it over time and review the balance once a year to see if you need to add to it.
- Pay yourself first – Saving for retirement is an essential step toward your financial success. It may seem like a daunting task, but even a small monthly commitment, gets you moving in the right direction. Setting up an automatic deduction from your payroll check will help you be consistent. You should work toward setting aside a minimum contribution of 10% of your gross salary.
- Set up an investment plan – Once you have started contributing to a retirement plan, set up an investment plan. An investment plan is a roadmap to meeting your goals. It involves coming up with a mix of stocks and bonds that addresses not only your long-term goals, but also your emotional reaction to volatility. A financial advisor can help prepare a diversified investment plan that can address these issues and provide a path to realizing your dreams.
Making new year resolutions can be a much-needed fresh start but goals are something you consistently work toward year after year and have the ability to transform your life. Even slow progress towards your goals can be life changing. Here’s to making your new year a change for the better.
Mario Hernandez has been a Certified Financial Planner (CFP) for over 30 years and brings a vast amount of experience in the financial planning and investment management business. Through Longevity Wealth Management, Mario provides holistic planning services that help clients find solutions to live their best life. Mario’s email address is mario@longevitywealthmanagement.com. Securities offered through Osaic Wealth, Inc. member FINRA/SIPC. Investment advisory services offered through Longevity Wealth Management. Osaic Wealth, Inc. is separately owned and other entities and/or marketing names, products or services referenced here are independent of Oasic. Certain insurance products are offered by Mario Hernandez as a licensed agent independent of Osaic Wealth, Inc.. Mario Hernandez is not affiliated with Osaic Wealth, Inc. or registered as a broker-dealer or investment advisor.
