The start of the new year is a great time to review your finances and take any action that may be prudent. With that in mind, we have written a short manageable list of actionable items everyone can take to kick off their year on a productive and responsible note.
Revisit your budget
- Take the time to review your spending over the last year. Did your actual spending budget align with what you had planned? Evaluate your spending trends and make appropriate adjustments to your household balance sheet.
- Closely review your debt and strategize ways to pay it. Start by tackling the balances with the highest interest being charged and prioritize becoming debt free.
Prepare for the planned and unexpected
- Project the cost of expensive essentials – have you been noticing issues with your water heater? Or is there a household appliance that needs to be replaced? Preparing for a large expense will feel better than relying on a credit card when the time comes.
- Bolster emergency savings – no one wants to admit that they could be laid off or suffer some other setback that would put pressure on their savings. Look closely at what you have saved and what you can do to increase your savings in the short-term for a more secure future
Review your legal documents and insurance policies
- Have there been changes in your life that should be reflected in your legal documents, like a change in residential address or marital status? Pull your files out and review what is stated and contact your attorney if there are updates to make.
- Similarly, it may be worthwhile to assess your insurance coverage. If there have been changes to your home, such as an addition or remodel, it may be necessary to increase the amount of coverage. Other reasons for increasing insurance coverage could be a new car or boat purchase, family heirlooms and jewelry coming into your possession or outdoor investments such as a sprinkler system, hot tub or storage shed.
Increase your retirement contribution
- Another year passing means we are all that much closer to retirement. Whether that brings you excitement or anxiety, or a healthy mix of both, the realization hopefully moves you to increase the amount you are saving for your golden years.
If you have any questions about the above list, please email your client relationship manager or the team at info@vcmi.net.
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