Looking to take control of your finances in the new year? Want to learn a few good habits when it comes to taking care of your cash? If so, then it’s time to start setting and achieving new year’s resolutions. Here are a couple of our top financial resolutions that we recommend.

1. Find a financial coach to teach you about money

Most people learn about money through trial and error. If you’ve ever been in serious debt before then you probably know the feeling of hopelessness and falling behind in your payments. It’s never fun to be forced to sell your things or work extra hours due to some financial missteps, and it hurts to encounter financial emergencies that you just weren’t prepared for.

Learning more about money can be really helpful for avoiding these mistakes in the past. Find yourself a financial coach that can teach you about money. Even if you think you won’t learn much, you’ll be surprised at how eye-opening some financial lessons can be. A shift in perspective can really help you see money differently.

2. Start the debt snowball as early as you can

Clearing your debt is one of the most important long-term financial goals that you can set. You’ll feel a joyous sense of freedom once you clear your debts and can finally start using your money for things that are meaningful to you. Sadly, it can be daunting to pay back multiple different debts, but there are strategies to simplify this.

One of the best ways to clear your debt is to use the snowball method. This means paying off the smaller debts first and then building momentum until you’ve paid off the large ones. The purpose of this is to order your debts so you have a better understanding of how much you owe, but it also means building up the motivation and willpower to start beating your financial struggles.

3. Focus on paying yourself first

Saving up money is one of the first yet most important financial tips that we learn. The idea of paying yourself just means setting aside some of your paychecks to store as savings or to pay off debts. Many people receive their paycheck and immediately spend it on luxuries that they could do without.

By building up a habit of “paying yourself” and clearing debts or putting money into savings first, you’ll build up a considerable amount of savings to use in emergencies and start clearing debt almost immediately.

4. Get better at budgeting

If you’ve never budgeted for expenses before then it can be daunting to start. If you’re more thoughtful about your expenses and know how to plan around big costs, then you’ll find it easier to manage larger payments in the future, such as a mortgage or car finance loan.

Here are some tips to help you get better at budgeting:

• Know exactly how much you’re making and what you get in your paycheck.

• Track all of your expenses so you know where your money is going.

• If you’re budgeting for something, make a plan so you know where and when the money

• is going.

• Be realistic about expenses and don’t cut down on basic necessities.

• Review your budget regularly–don’t make it a yearly occurrence!

This isn’t a comprehensive list of tips to help you improve your budgeting muscles, but it can certainly get you started.

5. Learn more about your financial situation so you know where you stand

It’s incredibly important to take a deep dive into your financial situation so that you have a much better understanding of how your investments, savings, and future financial plans are doing. For example, if you’ve recently initiated a 401(k) rollover then you might be curious about how much money you’ve saved for retirement. Similarly, any property or similar assets that you own might be worth less or more than when you purchased it.

The goal here is to get a regular update on what your long-term financial situation looks like. This can help you plan better for the future.

6. Plan ahead so you know where your finances are going

Saving money without a real purpose can eventually become unproductive. Instead of endlessly saving money with no goal in sight, plan ahead with your money so you know where you want to end up. Decide on the type of lifestyle that you want to live, the luxuries you want to have, and the conveniences that you enjoy.

When you start thinking ahead, the acts of saving and spending money start to hold more meaning. It gives every dollar you make or spends a purpose, and you'll have stronger financial clarity that helps to make better decisions now and in the future.

7. Give more generously this year than ever before

There’s a saying that true financial peace doesn’t happen until you can freely give back to others. Many people save up money and hold it close to their chest, always concerned whether it’s good enough or if they need to keep building more wealth. However, there are many cases where people feel liberated and free from their financial worries once they are comfortable (both financially and mentally) in giving generously.

Giving is good not just for the person receiving, but can also be comfortable and uplifting for the person giving. Whether it’s to an important friend, close family member, or even a charity, try to give more this year than you did last year.

8. Surprise someone in need that could really use a hand

Have a friend or family member that’s in serious financial trouble? If they could really use a hand to get out of a dire situation, then why not help? Being in a financially stable situation means that you have the power to give someone a hand and change lives. Making a difference in the world doesn’t need to be on a grand scale–it could be something as simple as helping a friend that has always had your back, or a family member that taught you a lot in the past.

9. Start getting rid of things that you don’t need

Overspending and building up clutter can be a really bad habit. By selling things that you don’t need and doing more research before you buy something, you’ll find that it can be surprisingly easy to start building up your savings and avoid impulse purchases. Make it a habit to sell or get rid of things that you don’t need anymore, and your wallet will thank you.

10. Save more money!

Saving money is surprisingly difficult for some people, especially given how restrictive a budget can feel if you’re depositing most of it into a savings account. However, learning to save more money can help you achieve greater things in the future. Learning to avoid impulse purchases, appreciating the things you buy, and learning to get better deals can all contribute to a healthier financial lifestyle.

We hope that these financial New Year’s resolutions can help you take control of your money next year.

Good personal financial planning brings a host of advantages. If you have one, you are more likely to:

• Pay your bills on time

• Save adequately for retirement

• Have an emergency fund

• Feel good about your financial life

There are many ways to build a financial plan and unfortunately it’s not usually covered in school.

In this post, we explore some of the components of robust financial planning in Wichita, regardless of the approach you take.

1.   An Estate Plan

Estate plans let you set out who you would like to care for your assets, should you be unable to do so because of illness, and who should get your wealth when you die. In it, who will administer your estate in the event of incapacity or death and how much you will allocate to each of your relatives are provided for. Unfortunately, 67 percent of Americans have no estate plan. When this is the case, the state already does and courts decide who gets powers of attorney and how assets are divided. If you are not sure you want a stranger deciding how your funds are split up for your family, now is the time to put one in place.

2.   Insurance Policies

No matter how much you save and invest, you can’t cover all your risks. Regardless of your net worth, you may encounter financial situations with intolerable downsides.

That’s where insurance can help. People with robust financial plans buy health and disability insurance to cover medical expenses and lost wages. And if they have dependents, they also get life insurance. Insurance is purchased to offload a risk we don’t want to retain ourselves to a larger company that can absorb that risk for a price, called a premium.

3.   Emergency Funds

Ideally, you should have three to twelve months’ worth of expenses in cash sitting in your bank account, just in case you lose your job or encounter an unexpected expense. An absolute minimum emergency fund would be $1,000 in cash. If you don’t have that, do whatever you can to get there as soon as possible.

4.   Retirement Income

Financial advisors recommend that you retire on at least 80 percent of your final income as a broad rule of thumb. However, you may need more than this if you still need to pay your mortgage, have debts, or have dependent children.

The best way to assess and map out your expenses and income needed to fund your retirement needs is to work with a financial planner who has the right software to assist you with the detailed and complex work of figuring out how your income needs, taxes and resources change over time in retirement. Rule of thumb is easy to under or over shoot. That’s why great software has been developed to solve these complex problems.

5.   Debt Reduction Plan

The average American has a consumer debt balance of $96,371. Therefore, you may require a debt management plan. Consolidating your debt may include paying off credit cards, personal loans, or other forms of borrowing. A financial coach or planner help to motivate in accomplishing your debt reduction goals.

6.   A Budget

Budgeting is the bread and butter of any personal financial plan, but only a minority of people do it.

Use apps for family financial planning and analysis that separate your expenses, showing you how much you are spending on entertainment, transport, travel, groceries, and so on. You can teach and automate software that is available so you don’t have to categorize every expense, which makes it an easier task than ever to complete. You can also set alerts that help you learn how much spending in a certain category feels like for the month.

7.   Net Worth Targets

Your net worth is the value of your assets minus liabilities. Ideally, you should have a net worth target in mind, and a date by which you want to reach it. (For instance, $300,000 by 2026).

To calculate your net worth, add up all your assets (such as home, car, cash balances, and money in your brokerage account) and subtract your liabilities (student loans, mortgages, and money you own on your credit card).

8.   Set Financial Goals

Lastly, set clear financial goals. Use a combination of short- and long-term objectives. For each goal, set a dollar figure and target date to achieve it. Also consider why you want to achieve a certain goal (for instance, to send a child to college or retire aged 55). A financial planner can help you identify more targeted and efficient action items that fit your needs and help you hit your goals sooner than you ever thought possible. A good strategy for the wrong problem doesn’t work well. There are many ways of accomplishing your goals. Using a trained professional with experience is well worth it since we only get one shot at this life. Don’t haphazardly live your life. Live with intention so you can have your best life possible with the time you have left.

Good personal financial planning brings a host of advantages. If you have one, you are more likely to:

• Pay your bills on time

• Save adequately for retirement

• Have an emergency fund

• Feel good about your financial life

There are many ways to build a financial plan and unfortunately it’s not usually covered in school.

In this post, we explore some of the components of robust financial planning in Wichita, regardless of the approach you take.

1.   An Estate Plan

Estate plans let you set out who you would like to care for your assets, should you be unable to do so because of illness, and who should get your wealth when you die. In it, who will administer your estate in the event of incapacity or death and how much you will allocate to each of your relatives are provided for. Unfortunately, 67 percent of Americans have no estate plan. When this is the case, the state already does and courts decide who gets powers of attorney and how assets are divided. If you are not sure you want a stranger deciding how your funds are split up for your family, now is the time to put one in place.

2.   Insurance Policies

No matter how much you save and invest, you can’t cover all your risks. Regardless of your net worth, you may encounter financial situations with intolerable downsides.

That’s where insurance can help. People with robust financial plans buy health and disability insurance to cover medical expenses and lost wages. And if they have dependents, they also get life insurance. Insurance is purchased to offload a risk we don’t want to retain ourselves to a larger company that can absorb that risk for a price, called a premium.

3.   Emergency Funds

Ideally, you should have three to twelve months’ worth of expenses in cash sitting in your bank account, just in case you lose your job or encounter an unexpected expense. An absolute minimum emergency fund would be $1,000 in cash. If you don’t have that, do whatever you can to get there as soon as possible.

4.   Retirement Income

Financial advisors recommend that you retire on at least 80 percent of your final income as a broad rule of thumb. However, you may need more than this if you still need to pay your mortgage, have debts, or have dependent children.

The best way to assess and map out your expenses and income needed to fund your retirement needs is to work with a financial planner who has the right software to assist you with the detailed and complex work of figuring out how your income needs, taxes and resources change over time in retirement. Rule of thumb is easy to under or over shoot. That’s why great software has been developed to solve these complex problems.

5.   Debt Reduction Plan

The average American has a consumer debt balance of $96,371. Therefore, you may require a debt management plan. Consolidating your debt may include paying off credit cards, personal loans, or other forms of borrowing. A financial coach or planner help to motivate in accomplishing your debt reduction goals.

6.   A Budget

Budgeting is the bread and butter of any personal financial plan, but only a minority of people do it.

Use apps for family financial planning and analysis that separate your expenses, showing you how much you are spending on entertainment, transport, travel, groceries, and so on. You can teach and automate software that is available so you don’t have to categorize every expense, which makes it an easier task than ever to complete. You can also set alerts that help you learn how much spending in a certain category feels like for the month.

7.   Net Worth Targets

Your net worth is the value of your assets minus liabilities. Ideally, you should have a net worth target in mind, and a date by which you want to reach it. (For instance, $300,000 by 2026).

To calculate your net worth, add up all your assets (such as home, car, cash balances, and money in your brokerage account) and subtract your liabilities (student loans, mortgages, and money you own on your credit card).

8.   Set Financial Goals

Lastly, set clear financial goals. Use a combination of short- and long-term objectives. For each goal, set a dollar figure and target date to achieve it. Also consider why you want to achieve a certain goal (for instance, to send a child to college or retire aged 55). A financial planner can help you identify more targeted and efficient action items that fit your needs and help you hit your goals sooner than you ever thought possible. A good strategy for the wrong problem doesn’t work well. There are many ways of accomplishing your goals. Using a trained professional with experience is well worth it since we only get one shot at this life. Don’t haphazardly live your life. Live with intention so you can have your best life possible with the time you have left.