Do you make New Year’s resolutions, such as going to the gym more often or learning a new language? These are worthy objectives, but this year, why not add some financial resolutions?
For starters, promise yourself that you will increase your contributions to your 401(k) or other employer-sponsored retirement plan.
Here’s another resolution: If you get a bonus or tax refund next year, use it to help fund your IRA or to fill a gap in another investment account.
Also, tell yourself that you will not overreact to market downturns by selling off investments that may still have strong prospects and are still appropriate for your needs.
And here’s one final item for your list: Start building an emergency fund containing several months’ worth of living expenses, with the money kept in a liquid, low-risk account. Without this fund, you may be forced to cash out long-term investments to pay for things such as a new furnace or a major car repair.
It will take some effort but following these resolutions could help you move closer to your financial goals in 2020 – and beyond.
If you have any questions please contact me at 980-859-2549 or by e-mail at Brandon.Monette@edwardjones.com
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.