4 Economic Habits to Achieve Your Financial Goals in 2020
Sunday, December 22, 2019, 6:00 AM | Leave Comment
The beginning of a new year marks a clean slate for many. It’s seen as an opportunity to leave your shortcomings of the previous year behind and embark on new goals that you’ve always wanted to accomplish.
For many, this involves completing financial goals. Unfortunately, few who set out to complete these goals actually accomplish them and instead quickly fall into old habits.
So, what are some new habits you can adopt in 2020 to help you achieve your financial goals?
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Create A Budget and Stick to It
Perhaps the easiest way to fail when trying to change your spending habits is not to track expenditures and the best way to do so is to create a budget. This allows you to see exactly where all of your money is going as soon as it is directly deposited into your account. This way, you can quickly identify areas where some fat can be trimmed and reallocated to more important goals such as retirement savings or saving for your child’s education. Once you’ve created a budget, it will be much easier to stick to it as opposed to performing a more ad hoc approach every time you make a purchase.
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Invest for the Long Term
While you may be bombarded with get rich quick schemes on a daily basis from friends, family and the media, the quickest way to build wealth is to invest for the long term. This involve investing in stable growth like index funds and real estate. If you don’t have the time to manage a real estate portfolio, consider hiring a real estate services provider to do this for you for a small fee.
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Pay Off Debts in Order of Descending Interest Rates
A huge setback to many financial goals is debt. Instead of saving money, you must pay back money you’ve borrowed plus interest. To eliminate these and increase the available funds for saving, begin to pay down your debts in order of highest to lowest interest rates. This will help you to save the maximum value in interest payments over time and grow your expendable income in order to increase savings.
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Always Pay Yourself First
The easiest way not to spend excess funds are to remove them from your account entirely. Set up a separate savings or retirement account and have a portion of each paycheck automatically deposited into them each time you get paid. Then, use the remaining funds in your account to cover things like utilities, phone bills, and even some fun purchases.
While finances can seem like a complicated labyrinth of impossible goals, you can easily break these goals up into smaller tasks which seem much more achievable. By starting small and growing into the more difficult tasks, the chances of achieving your financial goals in 2020 are greatly increased.
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