After a rocky year, we have finally turned the corner to 2010, like many of you I am ready to put 2009 in the history books and move forward. I am always excited to move onto the next year, I consider it the time to recharge, review and restart after the craziness of the holidays.
Over the past year, I have written a number of articles relating to issues to help you plan and prepare for your future. I thought this would be a good time to list ten actions for you to take as you review your current plan and prepare for the upcoming year.
1) Review your expenses, not just your monthly bills but include your out of pocket spending. Get a notebook and track where your money goes, after a month of tracking review your spending habits. Look for “habit expenses” you can reduce or eliminate.
2) Increasing your savings should follow cutting back on expenses. Increase your 401k contribution add to your IRA, or your savings account on a regular schedule. It does not have to be a lot but once you start do not stop, over time it will add up.
3) Lower your debt where possible work on paying off loans, and credit cards. Add to your scheduled payment when possible, every dollar of debt payment you reduce puts a dollar in your pocket.
4) Review your Social Security and pension benefits. Social Security provides statements to you each year showing possible benefits available. Start thinking about when you will take your benefits. Make sure you weigh the pros and cons of each option and consider the affect your decision will have while you are alive and the needs of your surviving spouse.
5) Review your estate plan and make sure your plans align with your wishes; review your will, trust and beneficiary designations to make sure they are current.
6) Review your insurance policies and make sure you have sufficient coverage; auto, home, life and liability.
7) Spend more time with family and friends reconnect with someone with whom you have lost touch.
8) Review your health with your doctor just as you would your financial plan with your advisor. Discuss areas to work on to improve your health, set reasonable goals, and commit to them.
9) Exercise your mind. Your brain needs exercise just like a muscle to perform at peak capacity, make this a year to learn something new and give your brain a workout. Take a class, learn a language, write a book, or join a book club.
10) Take some time for yourself. It is ok to be selfish and enjoy some “me” time. A massage, a spa day, a round of golf, whatever the activity take time out of your busy life to do the things you enjoy.
Make your goals reasonable do not decide to reduce your monthly expenses by eating two rather than three meals a day. A more practical goal would be to fill your travel mug with coffee before leaving for work and eliminating a stop at the high-end coffee shop, you can probably save ten dollars a week or more.
Make sure you get a notebook and commit to your goals and the strategy to reach them in writing, the commitment to accomplish is much stronger if it is in writing and monitor your progress. Set dates to accomplish each goal for example meet with attorney to update trust during the month of February, add fifty dollars a month to my IRA, the more specific the goal and strategy the stronger the commitment.
Each January 1 people make resolutions and by January 15 they have been forgotten. Make this year the year you carry your resolutions from January 1 to December 31, look at your accomplishments and you will stronger more confident and more “in control”.
Monday, January 25, 2010
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