January 8, 2019

New Year’s resolution: How to save (more) money in 2019

WEST LAFAYETTE, Ind. — Your child is nearing college age. Retirement isn’t too far away. Debt already is piling up.

Saving money should be a habit, not a hardship, if better financial planning is your New Year’s resolution for 2019, said Mike Roe, a certified financial planner and personal finance instructor in the College of Health and Human Sciences at Purdue University.

Many adults know to automatically contribute a portion of their earnings to a retirement account, such as a 401(k), IRA and Roth IRA, or a college savings account, such as a 529 plan. But additional, automated contributions to other funds could be a good way to pay down debt, save for travel or plan to retire early, Roe said.

Mike Roe Mike Roe, a certified financial planner and personal finance instructor at Purdue University, said saving should be a habit in 2019. (Purdue University photo) Download image

“Every time you get a paycheck, have some withheld and then direct those deductions to something that will help you meet a goal,” Roe said. “It’s very painless; you don’t see the money and it’s a way to start a habit of saving.”

Financial planning goals should be specific and measurable, but most importantly, they should be realistic, Roe said.

“It’s very important to set realistic goals, whether they are financial or otherwise,” he said. “If I was setting a weight loss goal, it might be unrealistic for me to say, ‘I want to lose 60 pounds.’ When you set unattainable goals, a lot of times you will lose motivation.” 

Writer: Joseph Paul, 765-494-9541, paul102@purdue.edu   

Source: Mike Roe, meroe@purdue.edu

Note to journalists: A video is available at https://www.youtube.com/watch?v=YozkHP55UN4.

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