Saving more, paying down debt and sticking to a budget are top New Year’s resolutions. MPR News’ Marianne Combs sat down with two financial experts who shared some smart, simple money moves to help set yourself up for financial success in 2020.
Those guests were:
Ruth Hayden, a personal finance educator based in St. Paul and the author of several books, including "Your Money Life" and "For Richer, Not Poorer."
And Jacquette Timmons, a financial behaviorist and the author of “Financial Intimacy: How to Create a Healthy Relationship with Your Money and Your Mate.”
Here are a few tips and takeaways from their conversation:
1) Look forward
Challenge yourself to let the past go and set up new structures for the future. “That hope and structure are needed to make it different,” said Hayden.
2) Know where your money is going
You can accomplish this through a formal budget, but the main goal is to identify patterns in your spending, Timmons said: “How are you spending it, how are you saving it, how are you earning it?” From there you can start to make changes where you see problems.
3) Communicate with yourself
What are your priorities when it comes to spending and saving? “For example, saving isn’t simply saying ‘OK, I’m going to put $100 into my saving account.’ That’s 80 percent. The [remaining] 20 percent is ‘I’m going to leave it there,’” said Hayden. Check in with and hold yourself accountable to your own priorities and goals.
4) You can start small, but start now
There’s almost never a perfect time to save money. If you can’t afford to save a lot, try to save something small, even if it’s a few cents on an interval. The time it’ll take to reach a goal might seem impossibly far off, but remember you are, in fact, making progress. It builds habits and a few cents today can become hundreds of dollars down the road, Hayden said. “Just start.”
5) Give your budget meaning
A budget is your plan, Hayden said, so first answer the question, “Why do I need a plan?” From th...