Most people have a tendency of making new financial resolutions on a yearly basis. However, what they don’t realize is that these resolutions are not new at all. They are either carrying forward what they had decided to do the previous year or are just repeating what they had planned two-three years ago.
So, why is it hard to implement your financial plans? Why do you keep on lagging even after purchasing a new book to write new resolutions?
Probably you may find it helpful to make the following money moves in 2017.
Discard your credit card debt
High-interest-rate credit card debt can seriously hold you back financially. You will find it senseless to make a future investment if you currently have a serious balance on your credit cards. In the long run, you waste both the present and your future.
Among the things you should prioritize in 2017 include paying-off any high-interest credit card debt that is giving you sleepless nights. This will not only place you in the right direction when it comes to financial freedom but will also up your credit card score.
Open an IRA, then max it out
Have you been thinking of opening an Individual Retirement Account? Well, 2017 is the year to do so. Do not be lagged behind by your work’s retirement plan like 401(k) or 403(b). There are two basic varieties of the IRAs – the traditional IRA and Roth. These two are differentiated by their tax treatment.
Traditional IRAs are “pre-tax” retirement accounts, which means your contributions may be tax-deductible (depending on your income), but your eventual withdrawals will be treated as taxable income. Meanwhile, Roth IRAs are “after-tax” retirement accounts. Contributions are not deductible, but qualifying withdrawals will be 100% tax-free.
A traditional IRA hinders you from withdrawing any funds until the age of 59-1/2. Doing so would lead to a penalty in terms of income tax on the withdrawn money.
Roth IRA contributions (but not earnings) can be withdrawn at any time, for any reason. Furthermore, while traditional IRAs have required minimum distributions once you reach age 70-1/2, Roth IRAs do not. In order to contribute directly to a Roth IRA, you need to meet certain income restrictions.
If you make an early plan, maxing out an IRA will be as easy as you have never thought of. Let 2017 be the year to do so
Increase your credit card score
If you have ever thought of increasing your credit card score then be aware your idea was a good one. As SubscriberWise CEO David Howe said in a past interview, a perfect score requires a “perfect storm” of credit strategy and life situations, which may not be possible or practical for you to achieve. However, do not strive for perfection when it comes to credit score.
It is vital for you to be aware of how the credit card score is calculated. This will assist you in your credit-improvement work. Check out here to learn more about how to improve your credit card score.