5 Smart Money Tasks for the New Year

I t’s the beginning of a new year, and many people are fired up with resolutions and new goals.

That is great!

While some people are committed to staying fit, others want to better their finances, and some people want to do both. Those focused on achieving their money goals may want to pay down credit card debts, increase emergency funds, start investing by opening a Roth IRA…and the list goes on.

While those goals are great, there is a problem.

Most people fail to achieve their financial goals because they neglect to take some key steps in their planning process.

To achieve your 2018 money goals, tackle these five tasks.

1 – Take Inventory

You have probably heard: You can’t go somewhere if you don’t know where you are. The same concept applies to our finances. In the quest to achieve your financial goals, taking stock helps you know where you are so you can define clear goals for better results. Now it’s your opportunity to assess your income and expenses and decide on the actions to take if your income is less than your expenses. The truth is that some consumers spend more than what they earn, and they may not even know it because they don’t take an honest inventory. Review your statements (bank, credit card, investments), insurance policies, wills, and contracts, and make changes if necessary.

2 – Meet with Your Financial Professionals

It’s time to pick up the phone, dial up your financial professional(s) (accountant, financial advisor, insurance agent, banker, tax preparer, etc.), and schedule a meeting. When it comes to achieving your financial goals, it can be daunting to do it alone, especially if you don’t have much knowledge of the subject matter. Your financial professional’s responsibilities are to advise and guide you in making the right decisions, but you have to have your skin in the game. Ask questions, and remember that there are no stupid ones. Inquire about the fees you are paying and how they are affecting your investments.

3 – Check Your Service Levels

Are you paying for a gym you barely use? Well, I have to be honest: That was the case for me until a couple of weeks ago when I decided to end my membership. You may be paying too much for your deluxe cable package that you don’t even watch; it’s time to cut the cord and subscribe to alternative services like Netflix or Hulu. That magazine you never read? Subscriptions may cost $5 or $10 a month. Perhaps it’s insignificant to you, but those costs add up over months and years. Check your bank or credit card statements and proudly cancel the services you don’t need like I did with my gym membership.

4 – Seek an Accountability Partner

Yes, you may have a financial professional to guide and assist you in making the right financial moves toward your goals, but he or she can’t be there for you all the time. You need an accountability partner: someone to support and make you accountable for achieving your money goals. The truth is that we achieve our goals better under observation. With an accountability partner, you can get honest feedback and be more disciplined. Need help achieving your goals? I can help you. Contact me here.

5 – Take Action

Now it’s time to take action toward these important tasks. Don’t be overwhelmed by all these key steps and trying to do them all in one day. Start with one by taking an inventory, and be self-aware when it comes to your finances. Block a time out each week to tackle one task at a time. If you have a partner, make sure you work together. It’s more fun!

Which task is most important to you in achieving your financial goals?