8 Financial Goals for 2019

With the year almost halfway over, now is a great time to take stock of your finances and plan for the next six months and beyond. If you don’t know where to start, that’s ok. Here’s a checklist you can use to stay on top of your financial goals.

1. (Re-)start your budget

A budget is simply a plan that helps you track and refine your income and spending. By understanding where you stand, you can create better short-term and long-term financial goals.

There are lots of different ways you can budget your money, but it starts with a few basic steps:

• Figure out your monthly income after taxes. This could differ from month to month, so it’s a good idea to get clarity on when and how much you’ll get paid.

• Calculate your expected monthly expenses. Start with fixed expenses such as rent and utilities, then add variable expenses like groceries and transportation.

• Make sure it all adds up. See what you can do to ensure you can cover debt and fixed expenses, with enough left over for your savings and variable expenses.

There are a number of free and low-cost budgeting tools and apps to help make things easier. Many of these programs and apps automatically pull your purchases from your credit or debit card, giving you a snapshot of your spending and income. If you prefer budgeting manually, consider using a simple spreadsheet.

2. Check your emergency fund

A survey by the Federal Reserve found that 40% of adults said they wouldn’t have the means to cover an unexpected $400 expense unless they borrowed money or sold something.

Having money set aside for things like an unexpected car repair or a leaky roof can mean the difference between being on top of your finances and falling further into debt. An emergency fund is there to help you through rough patches, so it’s important to make sure you have one.

Most experts recommend an emergency savings account to have enough money for three to six months-worth of expenses. This amount may not seem realistic to you now, but if you set small savings goals–and even automate a savings amount–you’ll get there eventually.

3. Monitor your credit score

If you want to get a mortgage, take out a personal loan, or even refinance your home to a lower rate, monitoring your credit score could help put you reach your financial goals faster. The higher your credit score, the better chance you’ll have of getting approved for a loan with the best rates.

A few factors that contribute to your credit score include:

• Payment history: A record of payments you’ve made to current and past lenders

• Credit utilization: How much credit you’re using compared to the credit available to you

• Credit history: The length of time your accounts have been open

• Credit mix: The type of credit accounts you have like student loans, mortgages, and credit cards

You can monitor your credit score using free tools online, and some credit card issuers offer free tools that update you on your credit score.

4. Evaluate your career goals

Of course, you can’t assess your financial goals without looking at your job situation. Ask yourself if you really like where your career is going. Perhaps you like your position but think you deserve a raise. Or maybe you’re ready for more responsibility and want to be compensated for it.

Take some time to articulate what your career goals are and come up with a plan to achieve them. For example, if you want to advance in your company, you could set up a meeting with your supervisor to see what you can do to be a more valuable employee.

Regularly establishing and reviewing your goals can help you find more satisfaction in your work and could help your bottom line.

5. Change your tax withholdings

An often overlooked step to improving money management is checking on your tax withholdings at your job. If you got a large tax refund or ended up owing more in taxes than you expected this year, you may want to consider adjusting those withholdings. That way, you’re not caught off guard and scrambling to find money to pay a tax bill you weren’t expecting. Or, if you got a large refund, changing your withholding could help you put more of your paycheck towards financial goals throughout the year instead of waiting for that one lump sum.

You may also want to rethink your withholdings if you experienced a life change such as welcoming a new addition to the family or getting married or divorced. If you need to change your tax withholdings, contact the HR department at your workplace for help.

6. Adjust your 401(k) contributions

Another item that gets overlooked is the 401(k). Many people get their 401(k) contributions deducted from their paycheck automatically and never think about adjusting those contributions again. But if your situation has changed since you started your job, you may want to think about how much you’re contributing each month.

If you can afford it, consider increasing your 401(k) contributions. You’ll lower your taxable income and earn “free money” if your employer matches your contribution. Plus, you can feel good knowing you’re doing something for your future self by setting aside money for retirement.

As for how much to set aside to put into your 401(k), start with maximizing your employer’s matches. For example, if your employer will contribute up to 5%, start with that. You can increase your contributions as you go—up to $19,000 in 2019 according to the IRS.

7. Look for ways to save

Saving money may seem hard, but it can help you get ahead financially by beefing up your emergency fund or paying down your debt. Here are a few ideas to help you start saving more:

• Eliminate unnecessary subscription services.

• Bring your lunch to work instead of going out.

• Negotiate bills with your cable, internet, or auto insurance provider.

• Carpool to work.

• Find free or cheap activities around your neighborhood.

• Do your own repairs.

• Take advantage of coupons when shopping online.

• Cook your own meals.

• Workout for free using online streaming videos.

8. Get your debt under control

Of course, no discussion about financial goals is complete without exploring your debt situation because your debt could easily be getting in the way of achieving those goals. Start by figuring out how much you owe, and then formulate a plan to get out of debt as quickly as possible. If you have multiple loans you need to pay back, think about how you can pay them all off in a realistic way.

However, if you’re struggling with serious debt, it might be time to seek professional help. Freedom Debt Relief is here to help you understand your options for dealing with your debt, including our debt settlement program. This could help you lower the principal amount you owe, making it easier to get out of debt faster. Our Certified Debt Consultants can help you find a solution that will put you on the path to a better financial future. Find out if you qualify right now.

Learn More

• 18 Ways to Save More Money (Freedom Debt Relief)

• 10 Financial Goals for the New Year (The Balance)

• How to Prioritize Your Financial Goals (Forbes)