9 Money Goals You Can Easily Tackle Now

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There are many ways to set and achieve financial goals, but with so many suggestions to improve your financial life, you might be wondering where to start.

This guide can help you hone in on some important financial goals to try to hit this year. Here is a list of nine goals you might want to consider reaching, depending on your current financial situation…

If you’re getting ready to graduate from school…

1. Create a budget
2. Get a head start on student loan repayment

If you’re out of school and have student loans…

3. Pick a method for paying off your balances
4. Pick a repayment plan that works for you
5. Make extra payments
6. Pay off your student loans in full

If you’ve already paid off your student loan debt…

7. Max out your retirement account
8. Build up your emergency savings
9. Start a wealth-building fund

If you’re getting ready to graduate from school…

The end of your university years is in sight, and you’re ready to go out into the real world.

Although you might be preparing to celebrate this milestone, now’s the time to also think about your financial goals and how to prepare for success. Below are a couple of goals you can start working toward before graduation.

1. Create a budget

You might not know what your income will look like once you land your first job out of college. But you can make conservative estimates and put together a budget while you’re still used to living on a smaller amount of money.

This is especially helpful if you expect to earn a decent salary once you graduate.

By keeping your expenses low, even with your higher income, you can generate more cash flow. From there, you can choose what to do with the extra cash. You can repay your student loans faster, for example.

2. Get a head start on student loan repayment

Student loans usually come with what is called a “grace period” (often six months) between graduation and when the loans are due. Create a plan now and know what actions you need to take to stay on track with payments before the grace period is finished.

The sooner you pick up the habit of sending in that monthly payment, the easier it will be to manage your student loan debt. What you want to try to avoid is getting used to spending your money on other things or getting into more debt.

Start paying off your student loans as soon as possible. Your future self will thank you for not letting growing interest obstruct other financial goals.

If you’re out of school and have student loans…

Your student loan debt is probably a heavy financial burden, and may cost you a significant amount of money due to the interest that grows over time.

Make one of your financial goals to pay off at least one student loan this year. And if that’s not possible, plan on making a serious dent in what you owe by taking on one of these strategies to crush your debt.

3. Pick a method for paying off your balances

Whether it’s the debt snowball or the debt avalanche method, choose a path of repayment when tackling your federal and private student loans.

Depending on which repayment strategy you choose, you’ll aim to either pay off your student loan with the smallest balance or the one with the highest interest rate.

Making payments on time, every month should also be a part of this plan to repay your loans to keep your credit score in good standing.

And remember, your financial goals will likely change as you move from student to graduate and then into the workforce. Each new year brings an opportunity to succeed in defining your financial goals and executing them.

4. Pick a repayment plan that works for you

There are eight repayment plans available for subsidized and unsubsidized federal student loans. Do some research about what works best for you. Then, set a goal to pick a repayment plan that will help you better manage your federal student loan debt.

If that sounds too daunting at the moment, your goal could be to learn about the repayment options available and familiarize yourself with them. That way you can later decide which repayment program is right for you.

5. Make extra payments

If you’re paying the minimum on your student loans, consider sticking to a financial goal of making an extra payment every month this year.

You can also increase your current payment by a set dollar amount or percentage. This can help you pay down your loans faster and save you money on interest in the process. You can estimate how much you’d save using our calculator.

6. Pay off your student loans in full

If you’re considering big financial goals, here is a really big one: Pay off every last cent of your student loan debt. A few actions you could take include:

  • Cut expenses and put the savings toward your debt.
  • Reduce your cost of living by moving to a new location, taking on roommates or embracing a frugal lifestyle for a specific number of months or for a year.
  • Earn more money at your job, work a side hustle, or seek a new position with higher pay.

Make sure the extra payments are principal-only payments on your student loans, and if you can only make a one-time extra payment, it’s better than doing nothing.

If you’ve already paid off your student loan debt…

If you’ve already repaid your student loans, congratulations, scratch that goal off your list. Here are a few more goals you can tackle instead.

7. Max out your retirement account

Whether it’s your 401(k) or an individual retirement account, try increasing your contributions this year and putting in the maximum amount allowed.

Here’s how much you can contribute in 2020, if you’re under the age of 50, according to the IRS:

  • 401(k) plans: $19,500
  • Traditional and Roth IRAs: $6,000
  • SIMPLE IRAs: $13,500

Select your retirement account and divide the maximum contribution allowed by 12. This will show you how much you need to save each month to hit your future money goals.

You might also want to max out your Health Savings Account if you have one. This can be viewed as a retirement account because you can roll over the funds year to year.

If you enter retirement with money in your HSA, you can use those funds tax-free for medical expenses. You only need to contribute $3,550 in 2020 to max out an HSA, according to the Society for Human Resource Management. That breaks down to $295.83 per month.

8. Build up your emergency savings

According to the 2018 Report on the Economic Well-Being of U.S. Households from the Federal Reserve, 4 in 10 adults do not have $400 saved to cover an emergency.

For your 2020 financial goal, build financial security by adding to your emergency fund.

Your first step is deciding how much you want to keep in your emergency savings. One financial suggestion is to have access to $1,000 in savings for an emergency. Another tip is to have three to six months of living expenses stowed away in a high-yield savings account.

Divide this number by 12 to find the amount you need to save each month to reach your new-year goal. Once you have a number, set up automatic transfers to force yourself to save.

9. Start a wealth-building fund

According to the U.S. Social Security Administration, the age of full retirement is 67 years, even if many Americans work well beyond that figure, according to AARP. If you’re already on track with your retirement-related financial goals, look at the years between now and the age you plan on retiring.

You’ll likely want to do a lot of big things with your life before you reach retirement. So, in addition to saving in a 401(k), make sure you’re also investing in accounts you can withdraw from before retirement.

Consider opening a brokerage account and contributing to it regularly. Doing so allows you to build wealth you can use throughout your life, not just when you retire.

Maya Dollarhide contributed to this report.

Interested in refinancing student loans?

Here are the top 6 lenders of 2020!
LenderVariable APREligible Degrees 
1.89% – 6.66%1Undergrad
& Graduate

Visit Splash

1.89% – 5.90%2Undergrad
& Graduate

Visit Laurel Road

2.25% – 6.09%3Undergrad
& Graduate

Visit SoFi

1.99% – 5.34%4Undergrad
& Graduate

Visit Earnest

1.97% – 8.54%5Undergrad
& Graduate

Visit Lendkey

2.39% – 6.01%Undergrad
& Graduate

Visit Elfi

Check out the testimonials and our in-depth reviews!
1 Important Disclosures for Splash Financial.

Splash Financial Disclosures

Terms and Conditions apply. Splash reserves the right to modify or discontinue products and benefits at any time without notice. Rates and terms are also subject to change at any time without notice. Offers are subject to credit approval. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet applicable underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates are reserved for the highest qualified borrowers. If approved, your actual rate will be within a range of rates and will depend on a variety of factors, including term of loan, a responsible financial history, income and other factors. Refinancing or consolidating private and federal student loans may not be the right decision for everyone. Federal loans carry special benefits not available for loans made through Splash Financial, for example, public service loan forgiveness and economic hardship programs, fee waivers and rebates on the principal, which may not be accessible to you after you refinance. The rates displayed may include a 0.25% autopay discount.

The information you provide to us is an inquiry to determine whether we or our lenders can make a loan offer that meets your needs. If we or any of our lending partners has an available loan offer for you, you will be invited to submit a loan application to the lender for its review. We do not guarantee that you will receive any loan offers or that your loan application will be approved. Offers are subject to credit approval and are available only to U.S. citizens or permanent residents who meet applicable underwriting requirements. Not all borrowers will receive the lowest rates, which are available to the most qualified borrowers. Participating lenders, rates and terms are subject to change at any time without notice.

To check the rates and terms you qualify for, Splash Financial conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the lender will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

Splash Financial and our lending partners reserve the right to modify or discontinue products and benefits at any time without notice. To qualify, a borrower must be a U.S. citizen and meet our lending partner’s underwriting requirements. Lowest rates are reserved for the highest qualified borrowers. This information is current as of October 1, 2020.


2 Important Disclosures for Laurel Road.

Laurel Road Disclosures

All credit products are subject to credit approval.

Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $4 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products and personal loans that help simplify lending through customized technology and personalized service. In April 2019, Laurel Road was acquired by KeyBank, one of the nation’s largest bank-based financial services companies. Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. All loans are provided by KeyBank National Association, a nationally chartered bank. Member FDIC. For more information, visit www.laurelroad.com.

As used throughout these Terms & Conditions, the term “Lender” refers to KeyBank National Association and its affiliates, agents, guaranty insurers, investors, assigns, and successors in interest.

  1. Checking your rate with Laurel Road only requires a soft credit pull, which will not affect your credit score. To proceed with an application, a hard credit pull will be required, which may affect your credit score.
  2. Savings vary based on rate and term of your existing and refinanced loan(s). Refinancing to a longer term may lower your monthly payments, but may also increase the total interest paid over the life of the loan. Refinancing to a shorter term may increase your monthly payments, but may lower the total interest paid over the life of the loan. Review your loan documentation for total cost of your refinanced loan.
  3. After loan disbursement, if a borrower documents a qualifying economic hardship, we may agree in our discretion to allow for full or partial forbearance of payments for one or more 3-month time periods (not to exceed 12 months in the aggregate during the term of your loan), provided that we receive acceptable documentation (including updating documentation) of the nature and expected duration of the borrower’s economic hardship. During any period of forbearance interest will continue to accrue. At the end of the forbearance period, any unpaid accrued interest will be capitalized and be added to the remaining principle amount of the loan.
  4. Automatic Payment (“AutoPay”) Discount: if the borrower chooses to make monthly payments automatically from a bank account, the interest rate will decrease by 0.25% and will increase back if the borrower stops making (or we stop accepting) monthly payments automatically from the borrower’s bank account. The 0.25% AutoPay discount will not reduce the monthly payment; instead, the discount is applied to the principal to help pay the loan down faster.

Assumptions: Repayment examples above assume a loan amount of $10,000 with repayment beginning immediately following disbursement. Repayment examples do not include the 0.25% AutoPay Discount.

Annual Percentage Rate (“APR”): This term represents the actual cost of financing to the borrower over the life of the loan expressed as a yearly rate.

Interest Rate: A simple annual rate that is applied to an unpaid balance.

Variable Rates: The current index for variable rate loans is derived from the one-month London Interbank Offered Rate (“LIBOR”) and changes in the LIBOR index may cause your monthly payment to increase. Borrowers who take out a term of 5, 7, or 10 years will have a maximum interest rate of 9%, those who take out a 15 or 20-year variable loan will have a maximum interest rate of 10%.

KEYBANK NATIONAL ASSOCIATION RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.

This information is current as of December 1, 2020. Information and rates are subject to change without notice.
 


3 Important Disclosures for SoFi.

SoFi Disclosures

  1. Student loan Refinance: Fixed rates from 2.99% APR to 6.09% APR (with AutoPay). Variable rates from 2.25% APR to 6.09% APR (with AutoPay). Interest rates on variable rate loans are capped at either 8.95% or 9.95% depending on term of loan. See APR examples and terms. Lowest variable rate of 2.25% APR assumes current 1 month LIBOR rate of 0.18% plus 2.32% margin minus 0.25% ACH discount. Not all borrowers receive the lowest rate. If approved for a loan, the fixed or variable interest rate offered will depend on your creditworthiness, and the term of the loan and other factors, and will be within the ranges of rates listed above. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. See eligibility details. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. *To check the rates and terms you qualify for, SoFi conducts a soft credit inquiry. Unlike hard credit inquiries, soft credit inquiries (or soft credit pulls) do not impact your credit score. Soft credit inquiries allow SoFi to show you what rates and terms SoFi can offer you up front. After seeing your rates, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit inquiry. Hard credit inquiries (or hard credit pulls) are required for SoFi to be able to issue you a loan. In addition to requiring your explicit permission, these credit pulls may impact your credit score. Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. 

4 Important Disclosures for Earnest.

Earnest Disclosures

To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.

Earnest fixed rate loan rates range from 2.98% APR (with Auto Pay) to 5.49% APR (with Auto Pay). Variable rate loan rates range from 1.99% APR (with Auto Pay) to 5.34% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of October 26, 2020, and are subject to change based on market conditions and borrower eligibility.

Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.

The information provided on this page is updated as of 10/26/2020. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at [email protected], or call 888-601-2801 for more information on our student loan refinance product.

© 2020 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.


5 Important Disclosures for LendKey.

LendKey Disclosures

Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it  endorse,  any educational institution.

Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised variable APR is only available for loan terms of  5 years and is reserved for applicants with FICO scores of at least 810.

As of 11/13/2020 student loan refinancing rates range from 1.97% to 8.54% Variable APR with AutoPay and 2.95% to 8.77% Fixed APR with AutoPay.