How to Prepare Yourself Financially for the New Year

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December is here, and within a few weeks, we'll be ushering in another year. The last month of 2018 is the perfect time to start thinking about all the resolutions you want to achieve in 2019. Of all the New Year's resolutions, you'll have in mind, improving your finances will surely be one of them. Handling your expenses responsibly will make life easier and stress-free. Here’s how to prepare yourself financially for the new year.

CREATE A PLAN TO SAVE AND INVEST

It’s important to always have an emergency savings fund that covers basic living expenses for 3-6 months. You never know what life will throw at you, so it’s best to be prepared. If you have a job that is unsteady and unreliable, bump those expenses to cover 6-12 months. If you’re paying off debt and expenses and can’t save that much, that’s okay too. Aim for saving at least $1,000-$2,000 to cover a rainy day.

Also, consider the option of opening up a Roth IRA account. It provides tax advantages for you, and when you withdraw all the money you’ve saved once you’re ready to retire, you won’t have to pay taxes. You can save up to $5,500 a year if you’re under 50 years old. With a Roth IRA, you have control over how much you want to deposit.  

REVIEW YOUR MEMBERSHIP ACCOUNTS AND SUBSCRIPTION FEES

In today’s world, nearly everyone has a subscription to multiple accounts. Netflix, Spotify, Youtube Premium, Amazon, Hulu, the list goes on and on. One can easily forget just how many accounts they’ve opened up, and how much they’re paying for it. Look over your memberships and ask yourself if it is worth keeping. If you’re on the fence about one option, check to see if they have a yearly fee. You’ll save a few bucks. Once finished, you’ll be surprised at how much you’ll save once you cancel a few subscriptions.