These are your top 3 financial goals for 2020 – Start working now
In this post, we will discuss the top 3 financial goals of Americans in 2020 and what can be done to achieve them.
Top 3 financial goals for 2020 – Tips to achieve them
Here are the top financial goals for Americans in 2020 and a few tips to achieve them.
- Save dollars for better financial stability: This is an important financial goal for many reasons. If you don’t have enough money in your savings account, then it will be difficult for you to cover living expenses and emergency expenses.
Recession is expected to hit in 2020. So this year is expected to be full of financial uncertainties. Anything can happen this year. Some people may lose their jobs. Some people may not get a pay hike even after giving their best performance. Some people may not get a job for a long long time. This is why saving money is the number 1 financial goal of Americans.
An emergency fund is the need of the hour. It can help people survive difficult times. According to financial experts, people should build a fat financial cushion for 2020. It should have enough money to cover 3-6 months of expenses.
Tips to build an emergency fund in 2020(i) Set aside 10% of your paycheck for building your emergency fund
(ii) Set up a budget to reduce your unnecessary expenses and trigger savings
(iii) Lead a frugal life to reduce the wastage of money and generate savings
See also: 12 Amazing tips to live a frugal life as a single
- Clear your debts to reduce financial stress: There are 2 types of debts – good and bad . A few examples of good debts are mortgage and student loans. Credit card debts and payday loans are bad debts. Now, it takes time to pay off home loans and student loans. But the same thing can’t be said about credit card debts and payday loans. These are bad debts and have extremely high-interest rates. This is why the second most important financial goal of the Americans is to get rid of debts.
Tips to pay off your debts
(i) Set up a budget and reduce your expenses to generate extra cash. Use this money to pay off credit card debts.
(ii) Set up an effective debt payoff plan to eliminate your debts one by one. Know how to consolidate debts in the most effective way.
(iii) Increase your income to have extra money for repaying your debts.
- Get yourself a second job to increase income: Since recession will hit the country in 2020, so it’s assumed that the job market will be dicey. It’s best to look for a second job before the recession hits the country. If you’re a web developer, then you can do freelancing. You can develop and design websites for various clients on weekdays and weekends to make extra money. Even if you don’t get a pay hike in 2020, then also you won’t suffer financially in this year.