2017
Finances
New Year , New Budget
By Abigail Soren
It ’ s a new year , a new you – time for resolutions ! How many of you made resolutions for your finances ? Maybe you have some broad goals like saving more or paying off debt . Have you thought about how to achieve those goals ? Make sure your goals are S . M . A . R . T . – Specific , Measurable , Achievable , Realistic , and Timely . Below I ’ ve outlined some suggestions to make 2017 your most financially savvy year yet following the S . M . A . R . T . guideline :
Abigail Soren is a Certified Financial Planner™ and Senior Financial Planner at Redwood Wealth Management , LLC . She assists clients in managing and balancing their investments and financial goals . In her spare time , Abigail volunteers for the Atlanta Humane Society and enjoys taking her Pomeranian , Jack , on long walks around the city . You ’ ll often find them on a Starbucks patio enjoying a good book .
Save MOre . Make sure you have an emergency fund – that means 3-6 months ’ worth of fixed living expenses set aside just in case poop hits the fan . Set a goal :
• Open a savings account separate from your checking account .
• Set up an auto-deposit and try to have it funded , say , by the end of 2017 , or whatever ’ s feasible for you .
Increase your retirement savings by one percent of your gross income .
• If you aren ’ t contributing to your retirement plan at work at least up to your employer match , start there .
• Open a Roth IRA and make an initial deposit ( max is $ 5,500 per year ). You can always start a monthly deposit later or contribute when you get bonuses .
Spend Less . Actually track what you spent for the last three months . If you are spending more than you bring home each month , you get to cut a few expenses .
Here are a few ways :
• Schedule a “ no spend ” weekend once a month . Get creative about how you choose to be a social butterfly for that weekend .
• Review your monthly subscriptions and cut the ones you aren ’ t using anymore .
Get ( Financially ) Organized . Check your Credit Report at to ensure no errors are listed .
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Review your employee benefits :
• What are you contributing to your 401K ? What is your company match ?
• Check your beneficiaries on your 401K . Do you have any listed or need to change them due to a major life event ?
• What insurance are you utilizing ? For instance , long term disability is a good idea to sign up for if your employer offers it .
If you owe taxes in April , consider adjusting your tax withholding and lower your personal exemptions to withhold more taxes throughout the year .
Pay Off Debt . The “ 28 / 36 Rule ” states that you should spend , at max , 28 percent of your gross monthly income on total housing expenses and no more than 36 percent on total debt ( housing , student or car loans , credit cards ). If you ’ re not within this range , think about :
• Paying off your highest interest debt first .
• Using your bonus to pay down a chunk of debt at a time .
• Set aside the additional funds from a promotion or raise to pay off debt .
Get The Word Out . Let your significant other / roommate / friend in on your financial goals . You will be much more likely to reach them if you are held accountable – and hey , they may even chip in and help !