offers tips for new year
Waddell and Reed Financial Services offers its top new year's resolutions for financial fitness.
"The New Year is as good time as any to turn over a new leaf and make some serious resolutions, especially financial resolutions," said Margaret Stenseng, Waddell and Reed financial adviser.
Here are Waddell and Reed's suggestions:
l Don't put off setting up a financial plan.
l Increase savings. Develop a monthly budget. Separate expenses that will remain the same each month from the ones that fluctuate. Find out where your money is going and see if you can reduce spending and increase savings.
l Reduce debt. Set a goal, such as reducing your debt by $2,000 for the year.
l Don't forget to pay yourself first. Use credit as little as possible and try to make over and above the minimum credit card payment when possible.
l Establish an emergency cash fund. Ideally, having several months of living expenses put aside for an emergency is the best recommendation.
l Save up for big-ticket purchases. Plan to replace appliances, furniture or a car. Instad of using credit, have a savings plan and budget for these items.
l Explore ways to fund your children's education. Consider options such as Individual Retirment Accounts.
l Consider an estate plan. An estate plan can protect loved ones and assets. It provides distribution of property and can help determine how much will get to beneficiaries, charities or Uncle Sam.
l Consider income during retirement. Arriving at retirement with sound resources is one thing; however, maintaining those resources during retirement is another.
For more information, call (888) WADDELL or visit www.waddell.com.