Making, following budget should be top 2018 goal
Q: What should be your primary financial goal for 2018?
A: Get out of debt. Make a list of all your outstanding balances and rank them based on the interest rate each one charges. When you pay them off, you’ll probably want to start with the one that has the highest rate. If you pick one to pay down, try to send in more than the minimum balance on any other outstanding credit card balances. At the same time, research credit card rates to see if you can move any balances to a card with lower interest.
Q: How can building a budget help?
A: Budgeting can help you find the money to pay off debt. With a budget, you compare your monthly income with your monthly bills and expenditures and see what’s left, or how much you’re overspending. Budgeting helps you understand where you stand financially and makes it easier for you to make good financial decisions that will be beneficial now and in the future.
Q: What other goals should we have for financial stability in 2018?
A: Think long-term. Starting a retirement savings plan now will pay off in big benefits later. Research your savings options, including a company retirement plan or tax-advantaged traditional or Roth individual retirement account (IRA). Your money can grow tax-deferred over time and be waiting for you when you’re ready to start a financially secure retirement.
Q: Any other must-dos for smart money moves? A: Create a will. Without a will, there’s no guarantee that your assets will go to the people you intend — and stay out of the hands of those you don’t. Your will also determines who will carry out your wishes as your executor and can establish who will take care of your minor children in the event of your death. In addition, use a living will to establish the kind of care you would like to receive at the end of your life if you’re unable to make your wishes known.
PAULA BURKES, BUSINESS WRITER