January 6, 2023

Saving more money and/or spending less almost always ends up near the top of the list of most popular New Year Resolutions, yet, how do you actually get started?  Putting a financial plan in place can seem very overwhelming.  Setting goals is a great way to start.  How much money do you want to try to save per month? How much less do you want to spend per month? Do you have something you would like to save up to do or purchase?  Making improvements to your saving and spending can be a lot like planning a road trip. If you know where you are starting from and you pick a destination, it is much easier to plan out the route.  When you plan out the route, you have a much better chance of reaching a certain destination.  So back to the resolution – how do you begin to plan out your route?

Step One – Know where you are starting from.  Make a budget.

  • Know exactly where you’re starting from. It’s a good idea to do a deep dive into your own financial health and find out exactly how much you’re spending each month. By doing this, you’ll be able to cut unnecessary spending and start a savings plan.

Step Two – Identify a destination. Set one or more financial goals for how much you want to save, and by when.

  • Where do you want to be next month, 6 months, a year from now, 5 years from now? Start by outlining clear concise, manageable goals to get yourself into a routine.

Step Three – Plan out your route. Identify new-to-you ways to save more and/or cut back based on your own budget.

  • Look at different financial vehicles for saving money that you aren’t currently utilizing.  Some examples are maxing out your 401k, and if you already are, contributing to an additional Roth or Traditional IRA.
  • If you already have both a 401k and an IRA, look at starting an investment account.

Financial resolutions can seem daunting at first - don’t be afraid to seek out professional financial guidance from someone who knows the available routes and can help you identify ways to save that you may not be doing already. 

a person in a blue suit

Melissa Talarico

CRPC®, Financial Advisor

E-Mail: mtalarico@brightonsecurities.com

Direct: 585.340.2234

 

1) https://www.cnbc.com/select/financial-new-years-resolutions/