The start of the new year often means new resolutions, or for some, it’s a fresh start with new goals. Kicking off January with Financial Wellness Month is the perfect opportunity to look at your personal finances. During this time of increasing inflation, you may wonder where your funds are going. Use this opportunity to re-assess your financial and retirement goals to stay on track. As they say, “The days are long, but the years are short,” and retirement will be here before you know it. The hardest part is getting started, so here are some tips to get you going.
- Create Your Financial Plan – It is important to look at your financial goals and develop a plan to achieve them. To make it easier, break them down into the short-term (six months to five years), mid-term (five-10 years), and long-term goals (10+ years).
- Develop Your Budget – Reviewing where your money goes is critical to keep your spending on track and to meet the goals of your financial plan. Assessing your budget regularly helps detect areas of deficiencies, achieve your savings and retirement goals, and build an emergency fund. CAPTRUST, TIAA, and Fidelity all have tools such as webinars, articles, and worksheets to assist in developing your budget to help you live within your means.
- Pay Down Your Debt – After evaluating your budget, look into tackling your debt. There are two well-known approaches, known as the Snowball Method and the Avalanche Method, that have helped many successfully pay down debt. Click here for the full article from Fidelity.
- Contribute Money into Retirement and Long-Term Savings – As a retirement-eligible employee in the UNC System, you are required to contribute 6 percent of your salary to your elected mandatory retirement plan, either TSERS or the ORP. In addition to your contributions, your UNC institution is also making an employer contribution on your behalf. (For employer vesting information, please see TSERS and ORP plan documents for additional information.) In addition to the mandatory plans, the UNC System also offers a supplemental 403(b) and 457(b) plan with the opportunity for additional retirement savings. Even a small amount each pay period compounded over time can make a significant difference at retirement.
Don’t get overwhelmed by creating a financial plan. Reach out to a UNC System financial professional with CAPTRUST, FIDELITY, and/or TIAA to help you identify goals and get you on track for your financial future.
