Keeping Your 2020 Financial Resolutions

Financial PlanningIn an article published in February 1966, TIME magazine made the following prediction:

“By 2000, the machines will be producing so much that everyone in the U.S. will, in effect, be independently wealthy. With Government benefits, even nonworking families will have, by one estimate, an annual income of $30,000-$40,000 (in 1966 dollars). “

In 21st Century dollars, that averages about $300,000 in income for doing basically nothing. Of course, that prediction didn’t come true. However, many enterprising individuals are making their financial dreams a reality. As the beginning of a new decade, 2020 represents an ideal opportunity to make a fresh financial start, and the three resolutions listed below can help.

Open or Add to an IRA

Rather than making a vague pledge to save for retirement, make a resolution to open or add to an Individual Retirement Fund (IRA). Individuals under age 50 can invest up to $6,000 each year tax free in a conventional IRA; people age 50 and older can invest up to $7,000 tax-free annually. Arranging periodic automatic transfers from a paycheck or a bank account eliminates the need to remember to add funds, and each payment will be small enough so that the “missing” funds make less of a dent in the budget, even for saving the maximum amount each year. By putting a concrete plan of action into place, the goal of actually opening or adding money to the IRA is much more likely to happen.

Build an Emergency Fund

According to the Federal Reserve, 39 percent of all Americans do not have enough funds on hand to cover an unexpected expense of just $400. Setting aside funds for a rainy day means that when the car won’t start or the kids need school supplies, the money will be there. If funds are tight, start small. The key is to be consistent. Even a few dollars set aside every week or every month add up quickly.

Become Your Own Boss

Many people dream of becoming their own bosses are discouraged because they can’t afford to quit their regular jobs and become full-time entrepreneurs. However, it isn’t necessary to take that sort of risk. Many people launch their own businesses on a part-time basis through converting a hobby into a money-making venture. For example, an amateur photographer may branch out into taking wedding photos or a musician may perform at parties. Eventually, they may decide to convert their part-time gig to a full-time career.

Another avenue for launching a part-time business is by engaging in direct sales through a reputable company like Amway, which combines the independence of running a business with the support of an established business model. So how does Amway work? Amway representatives sell supplements, cosmetics and home care items online and in person. They have the support of the entire Amway operation. Many representatives devote only a few hours each week to sales, while others choose to make their businesses a full-time career.

Meeting Your 2020 Financial Goals

The key to achieving improved finances in 2020 is to take decisive action. It’s not enough just to express a desire to save more money or become liberated from a 9 to 5 routine. Setting specific goals makes it easier to create a realistic plan and turn those dreams into a reality.

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