4 Tips to shape up your finances in the new year


GRAND RAPIDS, Mich (WOTV) – This is the time of the year when we think about the last few months and the things we should do in different ways in the coming year to have more achievement. If you want to find success with your money, there is no time like now. Make 2017 the year you set goals, gain control, and alter your financial life for good.

Get back to basics

If you are trying to save money next year, do not forget the essentials. The important thing is to spend less and save more. However, that does not mean you have to cut your expenses in half or live your life like a miser before you become successful. Alter your mindset and understand that no money saved is too small; they’ll add up.

Set goals

This is not unique, but a lot of Americans do not follow it. Be as precise as possible when setting up your financial goals. Say you want to purchase a house. Don’t give yourself the ambiguous purpose of saving up for some down payment. Rather, compel yourself to save, say, $250 monthly, which you can attain by cutting your expenses. Transfer the funds saved monthly to the account which gives you the best return. For example, the Edge Checking account at Adventure Credit Union pays 4% up to $10,000.

Open a Roth IRA

If you want to change your financial state for good, you should save as much as you can within Roth retirement accounts. A Roth IRA offers tax-free and penalty-free withdrawals for qualified expenses. Since Roth IRA contributions are nondeductible and taxed in the year they are earned, people who expect to be in a higher tax bracket when they retire may benefit more from these accounts than from a traditional IRA. You could be in a lower or higher tax bracket when you are within your 60s, who knows? With a Roth IRA, after age 59 ½, you will be able to take out your money free from tax and you have till April 15 to make donations for the 2016 tax year. Check out your options and talk with a specialist at your credit union.

Invest in yourself

When it comes to individual finance, your ultimate asset is yourself –ensure that you invest wisely. Make 2017 the year you choose to capitalize in your self-development, and come out of your comfort region. Learn new things, take risks, travel and run through your negotiating abilities. Be proactive and plant some seeds now to remain competitive and stay in control of your career and your finances.