Finances: 2020 Financial Forecast

2020 Financial Forecast

By Cathy Shouse

The New Year is a time for optimism and a sense of wanting to take charge. This looks different for everyone, but many of us think about how we’re doing with our money. Maybe you want to get a grip on finances that have been derailed by events in 2019. Or maybe you are pleased with your current money situation and would like to challenge yourself to do even better.

Whatever your financial status, it’s a good idea to take stock of your finances each year. We’ve gathered some information from Ric Runestad, president, CEO and investment advisor at Runestad Financial Advisors, to assist you in making your January finance resolutions a reality. (Note: The information presented is general knowledge to get you started and is not intended as specific advice for any particular individual situation.)

Runestad said, “Create a goal and a budget. It’s also good to do an inventory of your finances at the start of the year to see if there are improvements that can be made. For example, ask yourself, ‘do I have large amounts of money in a savings account that isn’t earning any interest?’”

Next, consider if you have any debt and set a plan to reduce it.

“If you want to eat an elephant, you do it one bite at a time,” he said.

RIC’S TIPS ON DEBT:

1. Don’t get discouraged.

2. Don’t ignore it. Confront it and create a plan for how to deal with it. If you find yourself in a hole, the first thing to do is to stop digging. So if you’re in debt, don’t add anymore to it. 3. Create a plan to relieve your debt. Retire debt instruments with the highest rate of interest first. Also, if you have savings that is low yield and debt that is charging high interest, use those savings to pay off that debt. For example, if you have $10,000 in a savings account that is paying zero interest and $20,000 in credit card interest, use as much of that savings to pay down that debt as possible. If you can get a home equity line of credit or some other financing to get rid of credit card debt, that can be a great idea, as well, but only if you resolve to never carry a credit card balance again.

RIC’S TIPS FOR WHEN FINANCES ARE ON TRACK:

People who find themselves in a position of having significant savings may want to consider hiring an advisor to help them manage it. Make sure you trust your advisor. You also need someone who is knowledgeable not just about investments, but about money management, as well. In today’s complex financial world, having someone to help you navigate can be extremely helpful. a

Resources: Runestad Financial, Leo, 260.627.3333, runestadfinancial.com