The start of a new year is the perfect time to think about what you’d like to accomplish in the next twelve months and set some goals to make your ambitions a reality. If finances tend to stress you out, taking small steps towards financial well-being can bring you more peace of mind in 2021. Below are some tips to help you prioritize and strengthen your financial behaviors this year.  

Create and follow a budget. Budgeting is a foundational step towards being in control of your money. They help you plan for all of your necessary expenses and discretionary spending within the context of your monthly income. In other words, budgets are your monthly financial plan. An Excel spreadsheet is an effective way to budget, and there is a Personal Monthly Budget template available. To get started:

1. Review 3 months of spending history (debit and credit activity, checking history, etc.)
2. Group your expenses into categories, covering necessities and typical spending patterns (grocery, transportation, housing, restaurants, personal care, etc.)
3. Compare your spending to your income, if you have extra money you can pay down debt or focus on additional goals. If there is a deficit, you’ll need to see where you can cut back.
4. Update your budget as you spend and earn throughout each month.

Have an emergency savings.  You should have money set aside so that you can overcome an unexpected expense without turning to debt or retirement assets. Ideally, you should strive for 3-6 of living expenses, but you could start with a smaller goal, like $1,000.    

Prepare for retirement. Below is a checklist to help ensure you’re saving appropriately for retirement:

• Enroll (if you haven’t already): The earlier you start, the less catching up you’ll have to do later
• Log on to your provider’s website: Periodic logins can provide important account insights
• Designate a beneficiary: Typically, this can be done online
• Contribute enough to get your full match if one is offered by your employer
• Increase your contribution each year, with a goal to save 11-15% of your pay

Keep learning! The webinar channel contains information on upcoming webinars and past playbacks on a variety of financial topics. Whether student loans or estate planning is on your mind, the webinar channel has information for everyone.

Note: Specific account and website options are plan and provider specific. Your plan may impose limits on how much you can save, eligibility for enrollment, and the frequency of enrollment and deferral changes.