It’s hard to believe that we’ve made it to the end of another year. Amidst the hustle of the holidays, I want to encourage you to stay diligent about your financial plan. Here is a little end-of-year to-do list that will help set you up for continued success in 2024.
For years it was normal to earn next to nothing if any in your checking or savings accounts. With the interest rate increases that we’ve experienced over the past two years, that has shifted. You can make some real money in your emergency fund or even in your checking account. Be sure to check and see what high-yield savings accounts that your bank offers, or take a look at opening an outside account — many are offering interest rates above 4%.
Be sure you’re contributing consistently to your retirement savings accounts and taking advantage of employer-sponsored plans or tax-advantaged options. The earlier you start, the more time your investments have to grow. Consider consulting a financial advisor to create a retirement strategy tailored to your specific goals.
Life can change a lot in a year. Take the time to review and update your budget to reflect any changes in your income, expenses, and financial goals. Prioritize your spending based on your values and long-term objectives. Don’t forget to allocate funds to savings, investments, and debt repayment, ensuring a well-balanced financial plan.
Speaking of budgets, this would be a great time to take a close look at your monthly subscriptions. Between streaming, news sites, gaming, and food delivery, these costs can pile up quickly. Cancel services that you no longer use or need. This can free up funds that can be redirected toward savings, investments, or experiences that bring you more value.
As we get a little older and grow our families and assets, our insurance needs can shift. Review all of your insurance coverages, including health, life, and property insurance. Ensure that your policies align with your current needs and circumstances. Regularly reassessing your insurance can save you money and provide the most comprehensive protection for you and your loved ones.
As we enter the new year, we should remember that taking care of our own personal development is incredibly important to mental, physical, and financial well-being. First, consider elevating your earning potential by investing in your skills and education. Continuous learning enhances your visibility in the job market and may open up new income streams. Secondly, setting goals, building good habits, and taking time for yourself can help set you up for long-term health and wellness so that you can actually spend time in your retirement enjoying the fruits of all that saving.
Article by Jacob Buckley, CFDA, MBA, Wealth Advisor at Family Financial Partners — a financial services firm in Lexington, Kentucky.
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