Get a clear vision for your finances in 2020 with world-class advice
11 minute read
We’re well into the new year, and it’s time to take charge of your financial life. The best way to start is to listen to the experts. How are these money-conscious financial bloggers, wealth advisors and coupon cutters setting their money strategy for 2020 in order to manage debt, accumulate more savings, and get on a better foot financially? Learn from the best and adjust your approach as we head into this new decade.
Over the years, I’ve gotten pretty savvy with how I spend my money, but one area that seems to eat up my budget (quite literally) is dining out! I’m making it a point in 2020 to challenge myself and my family to avoid dining out at restaurants as much as possible. It’s a small goal, but when you’ve got hungry teens who seem to have endless stomachs, that dining check adds up crazy quick!
We just ran a Financial Boot Camp series on Hip2Save.com, and we shared awesome tips on how to cook super easy meals using ingredients you likely already have in your pantry. And if you simply can’t part with your favorite dining out dishes, we called out our best restaurant copycat recipes to get that same meal at home!
If anyone else is looking to take on a similar goal this year, I can’t recommend our Financial Boot Camp enough as it has these challenges and more to make you smarter, savvier, and financially fit in the new year!
Put more focus on giving my kids age-appropriate lessons about what it means to be “financially well.” It’s never too early to teach children simple concepts about managing money and saving for the future.
My top money goal for 2020 is to maximize both my IRA and 401(k) contributions for 2020. This is a stretch goal even for myself, as it will require carefully managing expenses and increasing my overall income. However, with some proper planning and execution, it’s within my reach.
We recently refinanced to a 15-year mortgage, saving us thousands in interest. This year we are going to focus on paying that down as much as possible in Year One and save ourselves thousands more by doing so. All part of our master plan to retire debt-free. We hope to shave several years off that 15-year term.
As a small business owner, my income is tied to how Sure Dividend does. My #1 money goal for 2020 is to significantly grow Sure Dividend’s revenue and profit. But income is only one part of the personal wealth equation. Income less expenses determines how much you can invest for the future. The other primary money goal our household has headed into 2020 is to spend less in 2020 than we did in 2019. The combination of higher income and lower spending will result in a big boost in the amount we can save.
One of the most essential things to do every year at this stage in my life it to continue to have a solid plan for retirement. Working as a Massachusetts real-estate agent for the past 33 years, I’ve realized the importance of proper financial planning. Being a real estate agent gives me self-employment status when it comes to the IRS. There are some significant benefits to this, as it allows me to max out a retirement plan in ways that others are not afforded.
For example, with self-employed status, I can have a Keogh plan that allows me to contribute up to a maximum for $54,000 that is tax sheltered. The amount you can deduct is based on your income and I make it my goal to max it out each year. Of course, another part of that goal would be to make enough that I can deduct the highest allowable amount.
Maintain a $300 a month spend on groceries for our family. It was my resolution for 2018 and I have managed to stick to it ever since. I am a collector (or a hoarder as my husband calls me) of clearance meat that I buy when it is reduced at the supermarket. I also view the weekly grocery leaflets online and bulk buy.
As I write this, my freezer is completely full, and I know I won’t need to spend more than $20 a week on groceries between now and Easter. Then, after Easter, when seasonal meat is reduced in price, I will do it again. We are a family of 5, including 3 adults, and it makes me so proud that I can grocery shop for less than $300 a month and it is wonderful because groceries are something we are all in control of and is a great way to save some money.
Invest in as much income-producing real estate as possible to create wealth and passive income.
Our #1 money goal for 2020 is growing our net worth past $300,000. We are working on continuing to diversify our business, The Savvy Couple, along with purchasing a rental property and starting to flip items on eBay on a regular basis.
In 2020, I’m working on improving profitability in my business. By creating more systems and thinking more carefully about what I commit my time to. I hope to be able to work less and spend more time with my family.
My goal every year is to max out my retirement accounts! Even if I spend every other last cent, I know that as long as I’m doing that, I’ll be just fine later… You ever hear about “401(k) Millionaires”? That’s exactly how you become one 😉
My #1 money goal for 2020 is to have my side income outpace my primary income. Having a side gig is awesome, but making that side gig be the largest source of your income is real financial freedom.
In 2020, I will strive to maximize the impact of my family’s discretionary spending. I want each dollar spent (or saved) in this area to further our overall vision for living a fulfilled life.
My number one money goal going into 2020 is to increase my income by 20%. Many of my other financial goals (like adding money to savings, traveling, and buying a house) will be bolstered and achieved faster by increasing my income.
Goals are overrated. Becoming financially independent or debt-free isn’t about suddenly deciding that you want it. Instead, I suggest you set up a system. The best systems are ones that run on autopilot or with little maintenance. The good news is that your system doesn’t have to be perfect. You just need to set something up that works for you and then “roll with the punches” as you go.
For example, if you want to pay off your student loans fast, I suggest you set up an auto-pay to make an additional $500 monthly payment (or pick your number). You may need to adjust this upward or downward throughout 2020, but you WILL be on track to being debt free.
Our #1 goal with money in 2020 is to invest in stocks. Now that we’ve finished reading “How to Make Money in Stocks” by William J. O’Neil, we’re excited to put his system into practice.
Review all statements every Sunday afternoon to make sure there are no unauthorized charges and look for opportunities to cut expenses.
My #1 money goal for 2020 is to keep moving forward in our financial journey. Each smart money move we make, no matter how small, helps us to craft the life we want – a life full of options.
My #1 money goal for 2020 is to push my savings rate to 70% and maintain this throughout the entire year. Over the last 5+ years, I’ve dedicated myself to mastering personal finances on my own and saving aggressively. After becoming debt free in 2019, keeping expenses relatively low, and improving my career worth — this is actually an attainable goal. Last year I hovered between 62 and 65%, But with my last student debt paid off this past December, that extra money is immediately going towards my savings and investments.
Many people assume I make six figures (I don’t yet) or assume I live extremely frugal (I also do not). It just took a few years of work, being patient, and staying consistent over the years, which I think most people can do and achieve their own great savings rate.
As a professional travel blogger, I am always on the go and it has been difficult for me to be diligent about saving. In 2020, I plan to get back into stock investing, a passion I used to have years ago. I want to invest at least $5,000 per quarter into a new stock that I feel passionate about.
Take, for example, Tesla, which is a company I have been researching for the past few months and just purchased my first 10 shares. Since I started travel blogging back in early 2010, I have been debt-free and plan to stay that way by living frugally and living within my means. I prioritize experiences over things.
I would say that my number one money goal is to create a comprehensive estate plan:
- A Will or a Trust
- Beneficiaries Forms. Add beneficiaries to your bank accounts today!
- Powers of Attorney. Who will act on your behalf when you’re unable to state your wishes due to illness or injury.
- A Living Will. Instructions for what kind of medical treatment you would want — or do not want — if you were ever incapacitated.
- A Letter of Intent. A letter left to the executor of your will that provides an overview of your wishes for your assets and your family after your death, as well as any details for your funeral or burial.
My number one money goal for 2020 is to improve my automated savings and investments throughout the year instead of waiting for December. You can save up to $6,000 ($7,000 if you’re 50 or older) in an IRA or Roth IRA in 2020. I also use an HSA, which takes up to $7,100 for my family ($3,550 if you’re single). That’s $115 per week for each IRA and $136 per week for my HSA. Challenge accepted!
The average household in the US doesn’t have enough savings and doesn’t invest enough for retirement. I’m working hard to avoid being a part of that statistic. Getting out of debt and saving more is a great goal for 2020 and beyond.
My top goal is paying down our mortgage! With interest rates on the rise, I want to take advantage of the low interest rate that we currently have locked in, by paying off as much as possible now. For our family, doing that means hunting for savings on our monthly expenses (everything from banking fees to cable services), and then being committed to using those savings to make extra payments on our mortgage principal.
We plan to be debt free by the end of 2020! We have worked out a budget, and picked up extra work/jobs, and are de-junking our house (which is another goal) and selling things we don’t need. This will help us reach our end-of-year goal. We plan to spend more with a purpose vs. on a whim so that we can start living and enjoying life again with less worry.
I am going with an old-school answer – my number one goal is to reduce debt, and a lot of it! My goal is to reduce my debt load by $50,000.
There are several financial money goals I have in mind. But, the one that stands out to me and is the simplest to practice is writing down every penny I spend. Keeping a record of the things I buy and spend money on will help me better manage my finances and help me stay within a budget. This simple practice that I am currently struggling with will help me improve my financial literacy.
My #1 money goal as we head into 2020 is to remember to invest in myself. This means investing in my personal brand, taking classes and workshops, and broadening my travel experiences.
My number one money goal for 2020 is to pay off my student loan debt. If I am able to comp the amount I made from my side hustle this year or double it as I was able to the over the last year, I will be more than capable. This outstanding debt is something I do not want to have, so I intend to at least double my payment every month if I am not able to pay it off completely!
I know loans are a healthier version of debt from a credit standpoint, but I want to start contributing more to my 401(k), as well as save to travel. This is the main reason that my money goal is to eradicate my student loan debt!
My word for 2020 is consistency. I want to consistently pay off debt, add to savings, and be intentional with my finances as I grow my businesses.
Saving money should always be a #1 priority. A new year often brings about new goals & desires. In order to tackle either, it’s important to have a practical savings plan in place. It doesn’t need to be elaborate. It can be as simple as saving your loose change in an old pickle jar, or as common as opening a savings account. The goal is to save up for life’s new adventures rather than spontaneously diving in head first financially.
So yes, I can sign up for that new yoga class. Yes, I can go on a nice “staycation” at the hotel a few blocks away. The great news is, my pickle jar will foot the bill and I won’t have any financial regrets.
Published by Debt.com, LLC