The Right Money Moves to Get on Track for 2016

December 25, 2015

Money Moves Right Financial Track

Does money stress you out? Do you want to improve your financial situation? It’s time to get on the right track with your personal finances and 2016 is the year to do it. If you’re wondering where to start, use this guide that walks you through these money moves to make real progress in the new year.

Consider this your checklist. As you work down the list, check off the items you already have under control before moving to the next step.

Start with the Basics

You can’t hit a home run if you don’t know how to swing a bat or where the ball is. The same idea apples to making the right money moves to get on the right track to success. You can’t take big actions unless you first do the small, basic, easy stuff right.

If you want to make progress, build a solid foundation. Make sure you have the following items squared away:

  • A budget that works for you — and that you stick to each month
  • An understanding of your net worth (which is your assets, like cash, savings, and investments minus what you owe, like your debt)

Deal with Your Debt Emergency

If you have debt, that’s a financial emergency. The interest your debt accumulates will prevent you from building wealth, and you need to knock it out as soon as you can.

One of the best moves you can make with your money in 2016? Create a plan of attack for how you’ll chip away at what you owe. These posts can help you get started:

Boost Your Savings

If you don’t have debt or you created a plan to repay it, turn to your savings. You need to have a number of different buckets if you want to build your financial security:

Your emergency savings will help you ride out unexpected expenses that inevitably pop up throughout the year. You can cover these costs without derailing from your normal budget, dipping into savings earmarked for other needs and wants, or charging the credit card and racking up debt.

Aim to have at least three months’ worth of living expenses stashed away in a liquid savings account. That’s at a minimum. Build up from there, to whatever amount makes you feel comfortable and allows you to sleep soundly without worry at night.

You’ll also want to build up savings to fund your goals. With both your emergency and your cash savings funds, set up automated payments from your checking to your savings accounts. This ensures your goals are being funded and eliminates human error (like forgetting to make the transfer each month).

Now, turn to your retirement accounts. To build a sound financial future, you’ll want to contribute at least 15% to 20% of your gross income to tax-advantaged accounts (which might mean a 401k if you’re employed, or a SEP IRA if you’re self-employed. Talk with a financial pro to determine your options and what’s best if you have multiple choices).

Address Your Money Mindset

How we think matters just as much as the hard numbers and data in personal finance. If you don’t address your mindset, you won’t make lasting or sustainable progress.

Make sure you take time to think about things like:

Take Action!

If you can put these ideas into action, you’ll be well on your way to seeing real progress with your finances in 2016. And if you feel you need a higher-level conversation to continue pushing your success forward? Consider reaching out to a fee-only financial advisor who can serve as your fiduciary to address your questions and create a road map to greater financial success.

For Money Guy fans, you can work directly with Brian and Bo in order to build wealth and reach your biggest financial goals. Get in touch today and see how having your own personal Money Guy can make a positive impact on your personal finances!

FILED UNDER: Blogs, Featured



Most Recent Episodes

What I Learned From Being BROKE!!! (And Why I Wouldn’t Change It)

No one disputes the fact that being broke isn’t great. We want to spread the word that no matter where you came from, you can build wealth. In this episode, Brian and Bo share personal stories about their journey to wealth and lessons they learned along the way....

Top 10 Mind-Blowing Money Stats (2023 Edition)

These 10 money stats will blow your mind! We’ll discuss the unbelievable amount of money Americans save, when most reach millionaire status, and how many Americans carry a credit card balance. Research and resources from this episode: Most Americans don't have enough...

Wealth Multiplier Revealed: The Magic of Compound Interest!

There’s a reason why Albert Einstein called compounding interest the eighth wonder of the world! Do you know exactly how it works and how much your dollars could turn into by retirement? The Money Guy Wealth Multiplier can show anyone just how powerful every dollar...

From $0 to Millionaire in 10 Years (Is it Possible?)

How can you become a millionaire in 10 years or less? We’ll discuss common ways we see millionaires build wealth quickly, including through real estate, entrepreneurship, and the stock market. Discover how real wealth is built and why building wealth quickly may not...

Financial Advisors React to INFURIATING Money Advice on TikTok!

Brian and Bo are BACK to react to some more TERRIBLE financial TikTok advice! Join us as we take a look at some of the worst financial advice on the platform and tell you what to actually focus on in your own financial life. Enjoy the Show? Sign up for the Financial...

Investing Showdown: Dollar Cost Averaging vs. Lump Sum!

It’s a debate as old as time: what’s better, dollar cost averaging or lump sum investing? In this episode, we’ll cover the nuances and pros and cons of both, including in-depth case studies comparing investors at different times. Research and resources from this...

Is Inflation Really Ruining Your Finances? (You Won’t Like the Answer)

Inflation has changed our daily living expenses dramatically over the last few years. While we can’t control all of our expenses, there are many things in your control that can help you become a Financial Mutant and build wealth better than your peers. Enjoy the Show?...

Are $1,000 Car Payments Becoming the New Norm?!

New data shows more Americans than ever have car payments over $1,000. Is this becoming the new normal? How much could having a car payment of $1,000 be costing you for retirement? For more information, check out our Car Buying Checklist!