As we approach a new year, it is typically a time of reflection and planning. We look back on the last 11 months and determine what areas we wish to improve or alter during the upcoming year.

A study from Principal Financial Group shows Americans are hoping to change their financial strategies in 2019. More than one in five people felt they did not save enough in 2018; 11% said they did not budget properly.


Now is the time to make some sound financial goals for the upcoming year. And stick to them (Getty)


Others regretted taking on more debt (10%), spending above their means (9%), and accruing a larger balance on their credit card accounts (9%). In terms of how respondents mismanaged their money, 29% said they spent too much dining out, followed closely with grocery purchases at 27%.

In 2019, nearly half of Americans are aiming to save more each month (46%). Consumers also want to reduce their monthly spending (38%) and pay off credit card debt (29%).

If you are looking to save money or pay off debt in 2019, keep these tips in mind:

  • Prioritize your personal debt based on what will provide the most financial stability. Repay the debt in the way that works for you: smallest to largest, highest interest to lowest interest, or highest monthly payments to lowest monthly payments.
  • When you have paid off that debt, put the same amount of money in savings each month you were using to pay off that debt. For example, if you are no longer making a $500 credit card payment each month, put that same $500 into savings.
  • Make a realistic monthly budget and stick to it. Allot for dining out, groceries, and other expenses, but do not fall victim to last-minute temptations. Those add up quickly.
  • Examine your bank and credit card records from this past year. Determine where you may have overspent, and set goals to prevent those mistakes next year.

 

This article was written by Bill Hardekopf from Forbes and was legally licensed by AdvisorStream through the NewsCred publisher network. 

Raman Chopra, B.Eng.,CFP profile photo
Raman Chopra, B.Eng.,CFP
Agency Director & Managing Partner
iFreedom Financial Solutions
Office : 604-607-4909