According to a Fidelity Investments survey, nearly one third of Americans plan to make some type of money resolution for 2019.
“Why is it so important to budget your money? So you don’t run out of money,” said Robbie Arthur, financial planner at IFA Wealth in Roanoke.
“That way you can accumulate and plan for retirement.”
Arthur says a savings account is good way to make sure you have money set aside in case of emergencies.
“If you can treat your savings as a bill and have it automatically go into an account you will not touch, I think that’s the way to go,” said Arthur.
Arthur advises to have at least six months of cash on hand set aside just in case of emergencies.
If you’re retired, he suggests at least one to two years worth.
If you tend to overspend, get a pre-paid card every month worth $100-$200 that you can use to spend on eating out and other non-essential items. It’s a good way to keep yourself accountable when spending money on the non-essentials.
Arthur says if you’re diligent about keeping track of your credit card statements, it’s a good way to help you budget.
Save your statements and at the end of every year, break down what you’re spending. It can help you budget for the next year.
If you’re not good about paying it off each month, stick with the debit card.
Paying attention to the stock market is also an essential step when looking to invest.
“The last couple months the market has been going down. It’s a great time to dollar cost to average because you’re buying low as the market comes back up – anything over 6 months I think it’s a good to put maybe $1,500 in a mutual fund.”