Tips for sticking to a savings plan in the new year

Tips for sticking to a savings plan in the new year

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LUBBOCK, Texas -

It's time to start thinking about financial goals for 2019.

"We can't change the past, but we can definitely influence our future," Adviser Jeff Nicholas said. 

He said creating a budget starts with making realistic savings goals. 

"Review your financial goals for the year. Sit down, if you're married, sit down with your spouse and figure out what are our goals, where do we want to go financially, where do we want to be, not only a year from now, five, ten, fifteen, twenty, years from now," he said.

One way to ensure sticking to a plan is to cut unnecessary spending. When it comes to retirement many companies have a match policy, contributing a certain percentage of what employees put into a 401K or retirement plan.

"If you've got a company that's matching what you'll put in, at least put in up to the match. You've doubled your money and didn't have to do anything to double your money other than put into the 401k," Nicholas said. 

Putting aside money is not always easy. He said 10 percent of monthly earnings is a good starting point. 

"One of the rules of thumb that i use is something is better than nothing. So it's important to put something back," he said. "If you're in your 20's and 30's, your kids are little right? you're trying to buy your first home or your first car, all of those things. And so maybe you're not able to put as much back." 

Savings can help when unexpected expenses arise. Keep a separate rainy day fund to cover six months of regular expenses like rent or mortgage, car payments, food and utilities.
 

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