Setting realistic savings goals in the New Year

Updated: Dec. 20, 2019 at 6:01 AM EST
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RICHMOND, Va. (WWBT) - 2020 will be here before you know it, which is why it’s time to start making sure you have realistic savings goals for the New Year.

Making these goals realistic is your number one step. Your 401k is a great place to start. Look at how much you are contributing. If you can increase that amount by 1percent - do it.

Do the same with any 529 plans. That’s a good way to help your kids save for college. Also, figure out a good goal for yourself.

Are you looking to buy a car in 2020? Save for a down payment on a house? Create a plan to pay yourself first in 2020 and automate those savings.

Michael Joyce with the Richmond financial firm Agili, says the younger generations are used to this concept.

“They’re used to things coming automatically out of their account, whether it’s their cell phone bill or other payments that they need to make. But you can also do this for savings. Paying yourself first," said Joyce.

And of course, all of this is good to think about now for next year’s holidays. So, you save for Christmas 2020 and keep yourself from overspending next year.

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