It’s the start of a new year, and setting a yearly budget can be overwhelming. Financial psychologist and Creighton professor Brad Klontz said the first thing you need to do is identify your top three financial goals. “Visualize these goals, it’s a very powerful psychological technique. Don’t just think, “Oh, I need a savings account.” What is it for me? Tie it to your values, Klontz said. He said it’s best to automate these payments and keep them out of sight and out of mind. Run it,” Klontz said. Nico Johnson, CEO of Budget to Success. She said if you want your budget or savings plan to work, you have to take it seriously. pay yourself first,” Johnson said. She recommends being practical about budgeting, saying that when you write your budget, know the actual numbers of your income, debt, and expenses. “Practical steps you can take every day when it it took 3 to 5 minutes, see your bank statement. You have text alerts, online banking, mobile banking, but you’re also paying attention to what’s being authorized through your account,” Johnson said. -option apps, they said stay away. Some other tips include avoiding one-time investments, putting smaller amounts into your 401k and then building it up over time, and making saving fun to really challenge yourself to reach your financial goals. “Personal finance is pretty boring, and I think it would be helpful to make it exciting,” Klontz said. Watch the video above for the full story.
It’s the start of a new year, and setting a yearly budget can be overwhelming. Financial psychologist and Creighton professor Brad Klontz said the first thing you should do is identify your top three financial goals.
“Visualize these goals, this is a very powerful psychological technique. Don’t just think, “Oh, I need a savings account.” What is it for me? Make it tied to your values,” Klontz said.
Better to automate these payments and keep them out of sight and out of mind, he said.
“Get an automatic transfer from your checking account to this savings account or from your paycheck to your 401K. Get it moving, Klontz said.
Nico Johnson is CEO of Budget to Success. She said if you want your budget or savings plan to work, you have to take it seriously.
“It’s really important to make sure that you’re not only budgeting, but that you’re saving, which I like to say is paying yourself first,” Johnson said.
One thing she recommends is to be practical about budgeting, saying that when you write your budget, know the actual numbers of your income, debt and expenses.
“Practical steps, what you can do is look at your bank statement every day, if it was 3 to 5 minutes. You have text alerts, online banking, mobile banking, but you’re also paying attention to what’s being authorized through your account,” Johnson said.
Klontz and Johnson recommend using apps to help you budget, but when it comes to popular apps with four payment options, they advise staying away.
Some other tips include avoiding one-time investments, contributing smaller amounts to your 401k, then building it up over time, and making saving fun so you can really challenge yourself to reach your financial goals.
“Personal finance is pretty boring, and I think it’s helpful to make it exciting,” Klontz said.
Watch the video above for the full story.
Financial experts have tips for meeting your New Year’s financial resolutions
Source link Financial experts have tips for meeting your New Year’s financial resolutions