About half of all Americans set New Year's resolutions. One common goal is to improve financial health. If you're looking to do the same, here are some practical steps to secure your financial future.
### Create a budget
Start by creating a budget to understand your income, expenses, and financial goals. Stick to the budget and regularly review and adjust it as needed.
### Control and minimize debt
Identify areas of overspending and work towards reducing debt. Pay more than the minimum on credit card bills and set goals to pay off debt.
### Automate an emergency fund
Set aside money for unexpected expenses by automating deposits into an emergency fund account. Even small weekly contributions can add up over time.
### Get life insurance and review annually
Protect your loved ones with life insurance that equals 10 to 15 times your gross income. Use online calculators to determine coverage and review annually.
### Protect your paycheck with disability insurance
Calculate your needs with online tools and review coverage with HR or insurance professionals as your salary increases.
### Keep beneficiaries up to date
Regularly update beneficiaries on financial accounts to ensure the right person receives the funds in case of major life events.
### Put a will in place
Create a will to specify asset distribution, guardianship of minor children, and other important matters. Seek legal help to simplify the process.
### Save for retirement
Maximize retirement savings by enrolling in a 401(k) plan or other options like an IRA. Take advantage of any employer matching contributions to grow your nest egg.
Make 2021 the year you achieve financial fitness by following these steps for a better future for you and your loved ones.
