This type of post has been a tradition since 2017! Every year, I share the number of things you can do to improve your financial situation that equal to the year we are moving into. Since we have made it to 2020, that means I’ll be sharing 20 things for you to do for your finances this year!
If you aren’t sure what actions you can take to improve your financial situation, the tips below will help. Don’t feel like you need to do all 20 things at once, just take it one at a time. Doing any number of these things will put you in a better position financially for the year.
20 Things to Do for Your Finances in 2020
#1 Read a new personal finance book
There are so many excellent personal finance books out there, so why not pick up one (or more)! Increasing your financial knowledge can help you think and act differently with your money. Check out the 5 books that changed how I handle money.
#2 Work with a financial coach or advisor
If you struggle with budgeting, controlling your spending, or paying off debt, consider working with a finance coach (like me)! Also, if you find that you aren’t making any progress in your financial situation year over year, a finance coach can help.
Do you already have a handle on your budget and spending, plus you’re debt free? Consider working with a financial advisor so you can focus your efforts on building wealth.
#3 Start listening to finance podcasts or audiobooks
Similar to what I suggested above, you want to move into 2020 with an increased understanding of money and finance. Podcasts and audiobooks can help you increase your understanding, and you can listen to them anywhere!
#4 Set up or increase your automatic savings transfers
Do you already have automatic savings transfers set up? Make it a goal to increase the amount you transfer automatically. If you don’t have automatic transfers set up, now is the time to get them set up and running on autopilot.
#5 Increase your retirement contributions
A good habit is to increase your retirement contributions by 1% each year. This will help you keep up with inflation and ensure you are saving what you should be. The goal is to max out your 401k!
#6 Create a realistic budget
This tip has been on the list since 2017 and that’s because having a budget is so important for financial success. A budget is the tool that lays your situation out in front of you. When you know what you’re working with, you can act accordingly.
We’re doing 20% off City Girl Savings budget plans through January 15th! Get your budget now and use code 2020 at check out for your discount!
#7 Start investing regularly
There are so many easy ways to start investing that don’t require a lot of money. I highly recommend Betterment, but there are other great companies like Ellevest, Vanguard and Fidelity that let you invest with little effort and little knowledge.
#8 Set financial goals
You know how important setting goals is! If you set goals for your health or career, start 2020 off by setting financial goals. There are things you want for your finances, so why put off working towards them?!
#9 Bring in more money
We can no longer rely on one source of income to help us build wealth. One source of income usually helps us break even. The goal is not to break even, but to profit every month. Bring in more money to help you profit!
#10 Stick to an expense tracking system
There’s more to budgeting than setting your numbers at the beginning of the month – you actually have to track your spending to make sure you’re sticking to your budget. Find an expense tracking system that you can stick to. Not convinced you should be tracking? Read 5 Reasons to Start Tracking Your Spending.
#11 Pay off your credit cards
Credit cards are some of the most expensive forms of debt. The interest rates are incredibly high, and should be avoided at all costs. If you are carrying a balance on credit cards every month, pay them off once and for all!
#12 Pay off other debts
Once you’ve paid off your credit cards, it’s time to focus on your other debts. Pay off your car loan, your student loans and then your mortgage. The goal is to be 100% debt free!
#13 Recruit an accountability partner
Need some extra accountability to stick to your budget and financial goals? Recruit an accountability partner! Find a friend, co-worker or a virtual community (like the CGS Facebook Group) to help you stay accountable. Social accountability is a game changer!
#14 Encourage a friend to start budgeting
If you have a good handle on your budget, and you’re seeing the results, spread the word! Help a friend or family member start budgeting. Sometimes, encouraging words are all people need to get a move on.
#15 Stop loaning money
Unless you are where you want to be in your finances, you should not be loaning anyone money. That may sound harsh but you can’t help others until you help yourself. There’s no point in you both being worse-off!
#16 Set up your sinking funds
Sinking funds are different individual things you are saving for. If you have a vacation coming up, need to buy new clothes, or need to make a large purchase, set up a savings account for them! Transfer what you can into those accounts to help you save for them.
#17 Start a business
Have you been thinking about starting a business? What’s stopping you? Make 2020 the year that you finally start your business. You don’t have to quit your day job to start a business, you just need to manage your time wisely.
#18 Make your budget reviews fun
Budgeting is something that we should all be doing for the rest of our lives, no matter how wealthy we are. Because of that fact, we need to make it a fun experience. Check out some of my tips to make budgeting fun.
#19 Schedule time to review your money
You should be checking in on your accounts on a daily (or every other day) basis. You should know what you have at all times. Set up an automatic reminder in your phone to check in on your accounts.
#20 Track your financial progress
Seeing my progress year over year is so gratifying! Not just in finance, but any area. For the sake of this tip, find a way to track your financial progress. Track your account balances month over month and year over year. When I started tracking my net worth, a lot of great things happened!
Taking action on any of the items above will help ensure you are in a better financial position instantly and moving forward! What things are you working on in your finances in 2020? Post a comment below to share your goals and ask any questions you may have!
The CGS Team