MINT HILL, NC – It’s time for some New Year’s resolutions. Here are a few financial resolutions to consider:
First, don’t overreact to events. In early 2020, when the pandemic hit, the stock market plunged, but patient investors stuck around and were rewarded when the market bounced back.
Next, be prepared. Events like the pandemic are obviously rare, but all sorts of things can disrupt your financial strategy; it’s a good idea to build an emergency fund containing several months’ worth of living expenses.
Also, focus on things you can control. For example, if your employer cuts their 401(k) matching contribution, you can’t do much about it – but you might be able to boost the amount you put in your 401(k).
Finally, be aware of your own ability to save. The savings rate shot up in 2020 because people simply had fewer opportunities to spend. But when the pandemic is over, why not use your new savings habits to put money into your investments or pay off debts?
These aren’t the only financial resolutions you can make – but following them may help you develop habits that could benefit you in 2021 and beyond.
If you have any questions, please contact me at (980) 859-2549 or by e-mail at firstname.lastname@example.org
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor