The New Year is the time to reflect on all of your accomplishments from the previous year and begin setting your sights onto new ones. Typical New Year’s resolutions include traveling the world, getting back into the gym, eating clean, quitting a bad habit, and so much more, but what’s often overlooked and most important of all, are our financial goals. Paramount Tax Relief, serving the Sacramento area, is here to help you start the New Year off right by getting you on track to save more money this year.
Transfer Your Funds
Having money in your checking account is tempting and if you’re like most people, you’ll likely spend money that is easily obtainable to you. While it’s certainly a positive thing that your funds continue building up in your checking account, consider transferring some of that money into separate savings or investment accounts to ensure that your money is being used the right way. Seeing larger numbers in your checking account will make it more tempting to spend but if that money is stored away somewhere that isn’t easily accessed, you’ll all-but guarantee yourself that you’re saving for the future.
Plan To Pay Off Any Debts
It’s important to understand exactly how much you owe and where you owe it to and fortunately, Paramount Tax Relief near Sacramento is here to help! Take a few minutes to set financial goals for the New Year, including how much you would like to contribute to things like your retirement plan, a down payment or mortgage on a home, your children’s future education, and so much more. If you have any student or personal loans or debts, make a plan to come up with a realistic payment plan you can commit to in the New Year. By doing this, you’ll be far more organized and can begin focussing on the bigger picture.
Build Your Savings
Spending too much money on “wants” versus “needs”? Prioritizing the items that are necessary for you and your family and forgetting about the rest will allow you to build up your savings in a more timely fashion. Below are some additional ways you can save money for the future:
- Make your savings automatic. Have a portion of your paycheck automatically deposited into your savings account.
- Try to pay all of your bills on time. By doing this, you’ll save money in the long run by avoiding late fees, extra finance charges, repossession fees, and much more.
- Put any “extra” money into your savings account, rather than your checking.
- Contribute to an IRA account
- Rebalance your portfolio
- Download a budget app to help you properly prioritize your expenses.
- Canceling old/unnecessary subscription services
For any additional information regarding your finances and how you can make them a part of your New Year’s resolution, contact us at Paramount Tax Relief or schedule a free tax consultation in Sacramento today!