Was Your New Year’s Resolution to Save Money this Year?
Legends Bank has a few tips to keep you on track for saving and managing money for 2021
The key to resolutions is not making a list; it’s sticking to it. Here are some recommendations for managing your money this year.
- Create a budget with these 3 things:
- How much you’re taking in.
- How much you’re spending
- How much you’re saving.
If you’re not sure where your money is going, track your spending using a spreadsheet or an online budgeting tool.
- Determine how much you need to cover:
- fixed monthly expenses like mortgage and other living expenses.
- Determine how much you need to save for retirement:
- The rule of thumb is to save 10 – 15% of pre-tax income.
Personal new worth.
- It would help if you were doing this annually.
- Make a list of your assets (what you own) then subtract your liabilities (what you owe). This determines your net worth.
Project the cost of big-ticket items.
- These items can include upcoming college tuition for your children or major repairs to your home.
- If you know you’ll need the money in a few years, investments like short-term certificates of deposit (CD’s) are relatively safe.
Prepare for emergencies.
- If you are not yet retired, think about creating an emergency fund with three to six months’ worth of essential expenses, set aside in a saving account. This could help greatly if you suddenly lose your job or have a medical emergency that could keep you off your job for a while.
These are just a few tips to think about for your new year. If you need more in-depth information, we have a team of professionals available to you for any financial guidance you might need.
We’re Legends Bank.…professionals who know what you want and need most. And a homegrown, financial institution that’s here to stay.