At the start of a new year, many start thinking about their personal financial goals and how to achieve them. Some may opt to save up to buy a house; others may look at optimizing their retirement plans. Since life can be full of surprises, staying on track isn’t always easy. Fortunately, with a little planning and insight, you can control the way you manage your money even when the unexpected happens. To help you form a game plan, here are a few practical strategies to elevate your economic health in 2020.

How to Improve Your Financial Health in 2020

Set SMART Goals

Follow the SMART technique to create realistic and feasible goals. Under this approach, objectives should be specific, measurable, attainable, relevant to your personal growth, and time-based. For example, to reduce credit card debt, your SMART goal might look something like this:

• Specific: I will pay off $600 in credit card debt.
• Measurable: I will pay $100 a month.
• Attainable: I can afford $100 a month if I reduce spending on dining out at lunch.
• Relevant: Improving my credit score by reducing debt will help me qualify for a better mortgage rate when I’m ready to buy a house.
• Time-based: I’ll pay off my credit card debt in six months.

Make a Budget

Getting a sense of your budget helps clarify goals and reconfigure the way you spend. Start by looking at how much you earn each month and your expenditures for food, loans, clothing, gas, insurance, and utilities.

Next, identify feasible ways to reduce expenses. Set specific limits for each spending category so you don’t overspend.

If you spend more than you make, think about ways to boost your income, such as taking a second job or selling property you don’t need.

Find Support

Improving money management habits isn’t something you have to do alone. Depending on your goals, many professionals can help make them easier to achieve.

To spend less on credit cards, talk to a debt relief counselor about consolidation opportunities. If you want to buy a house, a real estate agent can introduce you to assistance programs designed to alleviate financial barriers to homeownership.

If your 2020 financial goals involve buying a house, RE/MAX Real Team Realty in Ashland, KY, will help you achieve them. Their experienced real estate agents can introduce you to attractive properties that fit your budget. They can also help you sell a house by preparing eye-catching listings and negotiating smart deals. To learn more about their capabilities, go online to meet their agents, or call (606) 325-0407 to speak with the staff.