Monthly money map for 2020
By Teresa Hunsaker
According to the National Endowment for Financial Education, 2,000 adults surveyed said they believe having someone to account to who understands their financial goals would help them be more financially successful.
So grab a trusted friend, a family member, your spouse, or a representative from your financial institution and let him or her help you be more accountable each month of 2020.
You don’t need to share all your financial information with your budget buddy; rather, think of this person as a workout buddy — someone to help you stay on course every month of the year and someone who cheers you on. This person’s role is to help you accomplish the following:
—Solve money problems and find solutions to overcome your financial weaknesses.
—Find your strengths when handling money and use them to your advantage.
—Stay motivated when the going gets tough.
Another plus to having an accountability partner is letting him or her know specifically what you are working on. What financial obstacles do you want to tackle in 2020 so you can enjoy each season more fully? Are there specific budget busters you want to overcome?
Here is what a 12-month guide, or money map, might look like.
January
Freeze out debt. Start the year off with a determination to pay down as much debt as possible. Make a chart or table for all your debts. Jot down the interest rate, the minimum monthly payment, and how much you owe. Use powerpay.org as a debt payoff calculator to get out from under your debt the fastest way while saving the most in interest.
If debt isn’t an issue, what about prepping this month for a smoother tax season by getting all your tax documents organized, finding necessary receipts, making tax appointments, and making note of any events that may affect how much you owe?
February
Show your budget some love this month. There are so many reasons to strengthen your relationship with your budget. Peace of mind and avoiding debt are just two. Spend time determining dollar amounts for categories of your expenses. Have a money conversation with those affected by your budgeting efforts. Discuss what you value most, share financial goals, and be honest about the challenges of budgeting. Then get down to business and stick to your budget. You will be amazed at how much more love you can have for this simple process.
March
Find your “pot of gold.” Get serious about saving dimes and dollars in every category of your spending. A recent Bankrate survey found that only about 40 percent of Americans would be able to cover an unexpected $1,000 expense. Put a plan in place to step down your expenses, then put the savings toward a worthy goal, such as your emergency savings account.
April
Tidy up your financial papers. Gather important papers, sort them by type and date, and place important documents in a box, notebook, or safe. Consider scanning relevant documents and save them to digital files. This way, you have at least two copies of your important papers. Disorganization not only costs you time but can also cost you money.
May
Spring into action on your credit report. When was the last time you checked your credit report and credit score? Do you know if there were errors? Go to annualcreditreport.com and order a free report from Equifax, Experian, or TransUnion. Rather than getting them all at once, request one report from a different bureau every 4 months to keep tabs throughout the year. Read your payment history to make sure it’s correct, and report any activity you don’t recognize.
June
Let the sun warm your investments. Make sure the investments you have still suit your long-range goals. Update and project your retirement needs, balances, and contributions based on your projected retirement age. Aim to contribute 15 percent of your income, and take advantage of employer matching if your company offers it. Work your budget to allow for the increase.
July
Make the summer sizzle with lots of freebies. Finding things for free can really make your budget pop. According to Finder.com, Americans have $45 billion of unused gift cards. Check to see if you might have any. Also watch for free entertainment in your community, free classes, free movies through your library, and free products. Just for testing their products, many places will ship them right to your door, including such places as PinchMe and SampleThat.
August
Back to school for you, too. This month, spend time studying and reading about financial success, money matters, and any topic surrounding your finances that you feel less knowledgeable about. Talk to your budget buddy about things you learned, things you want to try, or things that resonated with you, kind of like a book report. Maybe you can become more schooled in your insurance coverage, investments, or ways to make money from home.
September
September is National Preparedness Month. Do you have a will? Do you have advanced directives? Do you have a durable power of attorney for health care? Consider a revocable trust with an incapacity clause. This appoints someone to handle certain assets if you are incapacitated for any reason. Once you have these documents in place, hold a family council to discuss your wishes.
October
Harvest cash back on purchases by incorporating apps into your everyday spending. Apps like Ebates, Ibotta, Rakutan, CoinOut, and Dosh (and there are others) include ways to earn cash back. Remember, these apps are intended to be used for items you are already purchasing. You can also earn rewards, cash back, and bonuses through the use of a rewards credit card.
November
Feast on the important things. This month starts the buying temptations and general overindulgence with Black Friday, Cyber Monday, and “one-of-a-kind sales.” Don’t rush to buy. Practice restraint. This month, also practice an attitude of gratitude for everything you have, and don’t dwell on what you don’t have.
December
Celebrate the holidays without going broke. The planning for this is best started at the first of the year, but cutting back on holiday spending and minimizing the gift-giving frenzy is something that could benefit most of us. Is the joy of giving becoming a burden of debt in January? Some of our hearts are bigger than our paychecks, and we need to plan carefully and set limits when it comes to spending.
Hopefully, this list will provide ideas about how you can improve financially. Invite your budget buddy and carefully strategize your monthly money map for 2020. Best wishes for a year of financial success!
Teresa Hunsaker is a Utah State University Extension family and consumer sciences educator.
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