Start 2020 on the Right Foot: A Financial Resolution
Article by Kaylee Wagner
Photo by Tim Mossholder on Unsplash
The beginning of a new year, and in this case, a new decade is the perfect time to hit the ground “running” with your new year’s resolution. For many their resolutions are health-centered, but it’s important to remember the “health” of your finances too!
Below we’ve got some helpful steps so you can keep on track in the new year.
Spending/Savings Plan:
You can’t plan without first seeing where you are currently at. Once you get a good grasp of your budget you can see what changes can be made to maximize the amount that can be added to your retirement accounts or saved away for any occasion you may think of: vacation, wedding, college, new home, that boat you’ve been dreaming of… the list goes on and on.
Don’t Wait till the last minute for important deadlines!
Here in the next few months, you’ll be receiving your tax documents such as 1099’s AND W-2’s for filing. Now is the best time to start getting your paperwork organized and figuring out deductions, you definitely don’t want to be searching for those receipts come April! Not only is tax season right around the corner, but the required minimum distribution (RMD) of April 1st is also fast approaching as well. For those of you who are 70 ½ make sure to avoid the 50% penalty on your distribution amount by taking care of this early!
Plan for the best and worst-case!
It’s always good to shop around for insurance coverage and refresh your estate plans every so often. Not only do you want to make sure you take time to review your finances, but you also want to make sure you have a coverage plan that works well for your budget and situation. Comparing is your best tool to lock in a great rate on your auto and homeowner’s insurance and have coverage for any situation that may come your way. It’s also important to revisit your estate plan at the beginning of the year to make sure it still aligns with your desires.
Starting off your 2020 on the right foot will help ensure you don’t get bogged down with the deadlines approaching in April and set you up to maximize your savings to help plan for the future. Whether it’s planning for retirement, a vacation, paying down debts, or increasing your savings over the upcoming year maintaining a good grasp on your financial “health” is paramount to achieving your financial goals.