January is a time for setting goals, new habits and fresh starts.
Here are five financial New Year’s resolutions you can set for yourself:
Boost your financial IQ: Financial literacy is critical to building wealth. It will help you break bad habits and make better choices. From managing debt to investing, a finance professional can educate you on potential strategies for reaching your goals. When you work together to execute those strategies, you’ll do so with a clear understanding.
Plan for the future: Because of compound interest, the right time to get serious about your investments and savings is always as soon as possible. If you’ve delayed this goal, make 2025 the year to open or increase your retirement account contributions. A professional can make recommendations for what type of accounts to open. They can also help you calculate how much you need to contribute monthly to have the retirement you desire and to meet your other long-term goals.
Reduce your tax burden: It’s not too early to begin planning for tax season. Work with your advisor to use tax-advantaged investments and deductions to keep more of your money next year.
Review your insurance policies: Figuring out whether you have the right types of insurance coverage in place and in the proper amounts can be tricky. Review your policies with a professional to better understand this important aspect of your overall financial plan.
Make a budget: Whether you’re currently spending more than you earn or earning more than you spend, creating and adhering to a budget is the best way to get smart about your finances. If you’re in a net deficit, you can look to your budget to identify where you can reasonably reduce expenses, or alternatively, boost your income. Your budget can also show where to direct any surplus.
This new year, examine every facet of your finances to help you get your ducks in a row.
By: StatePoint (Edited by d-mars.com)
