As we bid adieu to yet another year, a common topic perpetually appears: The New Year’s Resolution. With finances front-of-mind for many, it’s typical for money to play a leading role in many a New Year’s goal. Keeping a resolution, however, can be challenging. Rather than setting broad or farfetched ambitions — which can be harder to obtain — consider the following:
- Build on last year’s budget. Did you spend less in certain categories — like travel, eating out, or entertainment — last year? Maintain some of those cuts and incorporate them into this year’s budget for an amazing ripple effect on other areas of your finances. For example, the money you saved on your weekly Friday night dinner-and-a-movie can be diverted into your retirement account to optimize savings. Remember, every little bit adds up.
- Stop wasting money. Paying your credit card off in full each month can be difficult, but you’re up for the challenge! Carrying this type of debt often means paying high interest rates, which results in wasted money. Instead, create a plan that includes spending within your means — thereby allowing you to pay off your debt in full each month — so you’re making the most of your hard-earned cash.
- Review your insurance and estate plan. Make sure your insurance coverage is adequate and beneficiaries are up to date. If you haven’t reviewed your estate plan recently, you’ve moved, or your assets or family has changed, schedule a meeting with your estate planning attorney.
- Update your will. This is something people tend to create and then forget about when, in reality, a will should be an ever-changing document that gets updated regularly to reflect every major life event.
- Plan for the future. The best financial planning includes considering your future. For example, are there any big expenses coming down the pipeline — tuition needs, vacation plans, or major home repairs, perhaps — that you’ll need to pay for? Start working them into your budget now so you don’t go into debt later to make them happen.
With just a little bit of planning, this can be your best year yet! We’d love to help. Contact our office to schedule a time to review your financial plan now.
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