Most people don’t really commit to their financial resolutions each New Year. Sometimes the goals are just too ambitious, and other times it’s simply because they weren’t held accountable to stick with them. Nevertheless, you’ll get another crack at it this year, and with these following tips you can get back on track with your financial planning for the New Year and keep it going over the long-term.
Determine What You Really Want
If you don’t know exactly what goals you are working towards, then you won’t achieve them. Take the time to write out all the financial goals you would like to complete this year. Then create a few milestones that you will need to accomplish and give these items a deadline. By knowing what you really want to attain and having a clear plan for succeeding, you will be starting off on the right foot.
Review Your Portfolio
There’s no better time to review your financial portfolios than now. Make it one of your resolutions to check which areas overperformed and underperformed, and rebalance your portfolio as necessary.
Revisit Your Retirement Savings
Every New Year, you should evaluate how much you have saved so far for your retirement. Then you need to create a financial plan for your current savings and see if you have the opportunity to contribute even further.
Update Your Debt Reduction Goal
As an important part of your financial planning for the New Year, don’t forget to review your current outstanding debts. If it is available to you to pay down some extra principal towards your mortgage or credit card payments, create a plan to do so. Determine how much you can realistically afford to pay off during the new year. For optimal results, avoid adding anything further to your credit card and talk to an advisor about getting a consolidated line of credit.
Plan to Save More
Make this new year the one where you form a new habit of putting more into your savings account. To resist spending what you should be putting away, set up an automatic payment plan. That way any money you need to be placed aside goes instantly into your savings account, making it much easier to save since you don’t even have to think about it.
Review Your Insurance
Take some time to think through how much protection you need and if you are on the right track to having the necessary amount of coverage. Talking to a professional can help you get a better handle on the options available to you.
Getting a head start on financial planning for the new year is always a smart step for creating a good plan that you can stick to. Take this opportunity to set realistic financial resolutions and keep track of how you are doing throughout the year. For help and guidance on how to set organize your financial future, talk to a financial advisor at The Beacon Group at Assante Wealth Management Ltd. today to review your goals and help you set achievable objectives.
