5 Tips for Financial Stability in 2020
If you’re tired of struggling financially and you’re looking to make a change in 2020, there’s plenty you can do to turn your situation around. From focusing on reducing your debts and creating a manageable budget to investing and purchasing life insurance, there are several things you can do to take your finances to the next level. Here are five ways to set yourself up for financial stability in 2020.
1. Focus on Debt
Make 2020 the year you focus on reducing your overall debt, whether it’s student loan debt, credit card debt or accounts that were sent to collections. You should also consider consolidating your credit card debt and refinancing your student loans if you have them. If money is tight, think about using your tax refund to pay off any lingering items on your credit report to help give your score a boost. Make a list of the debts you currently owe and work on getting them paid off as quickly as you can. Focus on smaller debts first and then set up a payment plan for your larger debts.
2. Create a Budget for Financial Stability
Creating a budget — and sticking to it — is something many people find difficult to do, but with the right amount of discipline, you can be on your way to creating a budget that works for you and crushing your financial goals this year. There are a number ways to help yourself create and stay on budget, from Pinterest printouts to apps that help you keep track of how much you’re spending. Try apps like Goodbudget, Mint, EveryDollar, and Digit to help you stay on top of just how much you’re spending, so you can save more and keep your finances in order.
3. Think About Getting Life Insurance
Life insurance is something everyone should consider getting. In the event that something happens to you, you’ll have peace of mind knowing your children or other beneficiaries will be taken care of after your death. Your beneficiaries will have the money they need to pay off debts like your mortgage or pay for your children’s education. Consider going through USAA for a life insurance policy that can help secure your family’s financial future. With that kind of policy, you’ll have coverage flexibility, which allows you to make adjustments as your needs change. You’ll also get competitive military-related benefits (like coverage during the war and $25,000 to help with expenses caused by a severe injury), and the choice between term life and permanent life insurance.
4. Set Up Automatic Savings
Setting up automatic savings can help you save before you spend. Determine what percentage of each paycheck you want to save and set up a recurring transfer from your checking to your savings each month. That way, you’re automatically saving money without even thinking about it or putting in any real effort. If you’re able to, have the money taken right out of your check before it even hits your checking account so that you don’t even miss it. Once you have enough saved, consider investing it.
5. Start Investing
You work hard for your money. There’s no reason your money shouldn’t work hard for you. That’s why letting it sit in a savings account collecting interest that’s not even keeping pace with inflation is the worst thing you can do. Instead, consider investing your money in a way that’ll get you a return much higher than any savings account could, like in the stock market, real estate or a combination of the two via REITs or real estate ETFs or mutual funds. Research your options and consult a financial advisor so that you can determine the best options for you based on the level of risk you’re comfortable taking and your financial goals.
The Path to Financial Stability in 2020
Making your way towards financial stability in 2020 doesn’t have to be difficult. Using the above tips, you can start making the changes you need to transform your financial future for the better and ensure you and your family are able to reach your financial goals.
