As the end of 2018 quickly approaches, what are your goals for 2019? I want to share five money goals that everyone should consider accomplishing in 2019. Are you ready? Good, let’s go!
Money Goal #1: Establish an emergency fund
Everyone should have an emergency fund for those times when something goes wrong in the house or the car breaks down. This fund should be at least $1,000.00. If you don’t have one start one right away.
If you have a safe in your home you can stack the emergency fund in cash. If not, open a savings account at a credit union (look for an account with no fee or a very small monthly fee). There is an easy way to amass $1,000.00 in an emergency fund. If you are expecting a tax refund take 10% of the refund amount and establish the fund or completely fund it. If you aren’t expecting a tax refund then take as little as $25.00 a week and put it away for emergency use.
You will need to be disciplined and differentiate between what is an emergency and what is a slight inconvenience that is faking as an emergency. Establish this fund at the start of 2019 with the goal to get to a minimum of $1,000.00 as soon as possible. You will be happy that you did. Also if you experience a true emergency and have to use the money, replenish the fund immediately. Unfortunately there are no limits on the number of emergencies a household has in a year.
Money Goal #2: Investment Portfolio
Repeat after me, “Assets are my friends, assets are my friends! Liabilities are not my friends, liabilities are not my friends!”
Start today and begin to build an investment portfolio. What should you put into your investment portfolio? Good question, it depends on what you want to do. When I say investment portfolio I am not just referring to the stock market. Your investment portfolio could include paper assets like stocks, bonds, mutual funds and debt, It could include digital assets like cryptocurrencies or physical assets like real estate, commodity or a profitable business. Whichever mix or asset type you decide is up to you. I suggest a mix of them all if possible. The initial goal is to have your paper and digital asset mix to be valued at no less than $10,000.00 for 2019 though.
Ten thousand dollars seems like a dream for some, but in reality it is really simple. Incremental investment over time combined with the appreciation of the market can get you to your goal. You could potentially invest $300.00 a month in the stock and crypto markets and over time with market appreciation you could have a paper/digital asset mix worth close to $10k by the end of summer 2019.
Paper and digital assets can be sold and converted to cash quickly. This is important to have in cash if you are short on cash and want to acquire another asset, you can liquidate a part of your investment portfolio to increase your wealth.
Money Goal #3: Take a fully funded vacation
The best vacation is paid vacation right? Exactly! So before you book your trip, make sure that you have saved for it. Don’t be tempted to throw the amount of the trip on a credit card and pay it off as you go, pay for it before you go! One of the worse things in life is to pay for something one year or more after you enjoyed the memories. Please don’t allow the bill to last longer than the memorable vacation.
Money Goal #4: The After Fund
This may be one of the most important funds you need to consider for 2019, I call it the after fund. How does you life look after retirement? How does you family continue on after your life is over? We must address after_____!
Make it a priority in 2019 to address life insurance, a will and a retirement plan. In fact, these should be addressed before we celebrate Dr. King’s birthday in a few weeks.
If you don’t have a life insurance policy or will, please get one. If you do have one, it is time for you to take a peak at the policy or will, make sure it provides the coverage you want and make sure the beneficiaries are still people you want to benefit (you may also want to consider making your favorite non-profit or church as one of the benefactors also). Freshen things up if necessary. If you are having difficulty establishing either and you need to be pointed in the right direction, by all means, let me know!
As far as retirement goes, if your employer offers an employer sponsored plan (401k or 403B) join it. I would also create a retirement account, preferably a Roth IRA.
Money Goal #5: Get Out Of Debt!
I can write for days about this topic, but the bottom line here is to get out of debt in 2019. If your debt isn’t causing you to earn money at a rate faster than the debt is accumulating, you don’t need the debt! Get out of it ASAP!
Let’s be relentless with these five money goals for 2019. You may have some others, go ahead and add those to the list, but let’s begin to address each of them now!