Las Vegas Sun

March 29, 2024

CONTENT PRESENTED BY America First Credit Union

Resolve to improve your finances this new year

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Powered by America First Credit Union

Setting resolutions is a great way to kickstart the new year and align your vision for the future—and making financial achievements a priority can help propel other goals for years to come. "Financial fitness and discipline can grant people the freedom to pursue their dreams. So, if there's one resolution to keep next year, ensure it's related to your finances," said Nicole Cypers, Vice President of Public Relations at America First Credit Union. Here are some resolutions to consider.

Evaluate your goals

Consider both short-term and long-term financial goals. “Whether it’s a new car, a house or planning for retirement, think about what you want in 2020 and beyond,” Cypers said. Once you have a clear focus, you can create an action plan. “For example, promising to save for retirement is vague, but saying ‘I will put $10,000 in my IRA by the end of the year’ is much more actionable,” Cypers said. Measurable resolutions can keep you accountable and goal-oriented.

Manage debt

Debt can get a bad rap. Some debt is good and just about everyone carries it to varying degrees, so learning how to manage it is integral to financial health. “Many people need to make smarter debt decisions. If you’re carrying high consumer balances, have an unmanageable total or don’t have an adequate payback schedule, this should be a high priority,” Cypers said. Start by evaluating debts and organizing them by interest rate. Plan to pay back the accounts with the highest interest rates first, likely credit cards, then develop a plan for each line of credit. You can also visit your financial institution for resources on debt management.

Expand savings

Start with traditional savings account but if you’re putting together a small nest egg, you can begin depositing that money into strategic savings accounts: Roth IRAs, traditional IRAs, savings bonds, certificates, and more are all good options.

Make a budget

A realistic budget is very valuable. “Your budget may need to be reevaluated to accommodate goals in a new year. Always make savings a priority, track your true expenses and base income on your take-home after taxes,” Cypers said. Whether you need to rework your existing budget or create a new one entirely, make sure it’s realistic and livable.

Get organized

If your financial situation is disorganized, January is a great time to set it straight. “If you have papers piling up around the house or need to clear some space on your hard drive, you’ll want to streamline documents and files,” said Cypers. “Having records organized for easy access and navigation makes other financial tasks less daunting, too.”

• Some documents you should hold on to forever, such as birth, death and marriage certificates, Social Security cards, wills, trusts, etc. These should be locked up safely, with secure digital backups.

• Maintain important tax records for seven years, which is how long the IRS can go back for an audit. Make it a habit to review and throw away older returns each time you file.

• File pay stubs, bank statements, investment statements and canceled checks for up to a year. “Credit card statements can be tossed within 45 days, except those you may need for business, taxes, insurance or proof of purchase,” Cypers said.

• ATM slips and utility bills can be thrown away when they’re checked against your account balance.

Evaluate your financial institution

Many people settle on a bank or credit union—often the same organization their parents or spouse use—and never look back. While this is fine for some, it may be worth looking into other options if you’re not satisfied. “The institution should be as invested in you and your health as you are in theirs. If you don’t feel like a bank aligns with your values, it’s a good idea to see what else is out there,” Cypers said.