It’s hard to believe that 2017 is behind us and we have begun a new year. Inevitably, we have taken some time to contemplate the previous year‘s activities and are in the planning stages for 2018. Were you able to complete all of the goals you set out to accomplish in 2017? If so, I commend you! However, the reality for many of us is that these goals are a continual work in process.

January is a good time to reassess our financial goals and make adjustments to put us back on track for a potentially happier and less stressful year.

Here are two financial considerations that I challenge you to look at in 2018.

1. Create an emergency fund.
   
   According to a survey at BankRate.com, just 37% of Americans have enough in savings to pay for a $500 or $1,000 emergency. The other 63% resort to measures like borrowing from a credit card, a bank or friends and family. This, inevitably, puts them even further behind.
   
   The experts at CNN Money recommend having somewhere between 3 to 6 months’ worth of costs saved for unexpected expenses. This may seem like a daunting task and personal situations may vary that number. My recommendation is to simply get started. Create an emergency fund that is independent from your main fund. Transfer as little as $10 per week (automatically, if possible) from your main account to the newly created emergency fund and, before yearend, you will have saved over $500.

2. Pay down credit card debt.
   
   ValuePenguin.com states that the average household in Iowa carries approximately $5,800 in credit card debt which, by comparison, is at the bottom of the national average. Unfortunately, the average American today holds 52% more debt today than they did a decade ago.  
   
   To get serious about paying down your credit card debt, create a plan. Establish a realistic budget and determine the most you can afford to put towards paying down credit card debts. Rank your cards highest to lowest by interest rate. Always make at least the minimum payment on each card and, if there are extra funds, pay the credit card with the highest interest rate first. In the end, this will save you the most in interest.
   
   Creating and sticking to a plan may not pay off your debts overnight but, at the end of the year, you will likely be in a better financial position then you were the year before.

Best wishes for a prosperous New Year!

Matthew Klein
Assistant Vice President, Business Development Officer
Waukee Main Office (515) 987-2299