The end of the year is fast approaching, and the new year is knocking at the door. As we prepare for the coming year it’s easy to get caught up in the excitement of a fresh start or new resolutions, but one of the most powerful things you can do for yourself is plan ahead for your finances. Getting your finances in order isn’t about being perfect; it’s about creating a roadmap that helps you feel more in control, less stress, and better prepared for whatever the year may bring. Remember to review this roadmap-budget at least monthly!
Here are some monthly ideas on how you can maintain financial control.
January: Make a plan. Decide which things have the highest priority and make your own monthly to-do list based on your needs. Take this month to assess your personal needs and plan your monthly check list accordingly. This would be a good time to draft a budget, prioritize, and look at potential places to cut back.
February: Prepare for tax time. Gather your needed documents and get organized. If you’re due a tax refund, make plans to invest at least a portion of it and set aside another part for any specific needs you may have. (Don’t just spend it all on fun stuff).
March: Start your estate plan. If you already have one in place, make sure it’s up to date. If you’re new to estate planning and don’t know where to start, schedule an appointment with an estate attorney.
April: Do some spring cleaning, both in your home and your finances. Clear out old unneeded documents and get things organized. If home repairs are needed, this could be a good time to budget and focus on those. (This could also be a good area to spend your tax return).
May: Check your credit score. You can access one free report from each of the major credit bureaus each year. Request yours and resolve any issues you find. Assess any debts and make a plan to pay them down and eliminate them.
June: Give yourself a mid-year check-up. Go over what you’ve done and make sure you have completed tasks and goals. Have you been reviewing your budget monthly? Check in on your investments; do they still align with your risk tolerance? Analyze what you have left to do regarding your finances and adjust wherever needed.
July: Evaluate your 401k and other retirement savings accounts. What better way to celebrate Independence Day than by securing your financial independence in retirement?
August: Focus on education. Take time to learn something or dive deeper into a financial topic that interests you. You could open a 529 account for your child or grandchild. Help your children succeed financially and teach them what you have learned.
September is Life Insurance Awareness Month. What better time to review your coverage levels for your life insurance, as well as your health, disability, liability, auto, and property insurance. Look into any discounts you might qualify for.
October: Begin some year-end tasks. Don’t wait until the last minute; start getting your tax documents in order before the end of the year. This is also a great time to assess your holiday budget and start making lists for your holiday shopping.
November: This is a great time to be grateful and give back.
December: Take this month to boost your emergency fund and find ways to add to it throughout the coming years. Work towards having at least 6 months’ worth of living expenses put away.
You made it to the end of the year, now make sure you’re all set up for the new year! Look at the progress you’ve made and make plans to keep your momentum. Happy New Year!
Photo: Robin Higgins
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