Nine for ’19: Financial Steps You Should Take Now

It’s the beginning of the new year, and hopefully by now you would have sorted out your new year resolutions. Whether you’ve done so yet or not, one of most important resolutions to make for the new year should be to take better steps towards financial build-up. It should be about balancing your earnings, expenditures and savings, reviewing tax and debts, and most importantly, it should give you an outlook on insurance and retirement strategies.

With over a month into 2019, here are nine financial steps you should take now to have easy finances for the rest of the year and beyond:

1.   Organizing Important Files and Documents:

One of the most important tasks to do at the start of the year is to maintain a record of your expenses, tax files and insurance documents. Having all the files organized would help reviewing the finances with your financial advisor be a lot easier and less time-consuming.

2.   Create a Balance Sheet:

Don’t forget to create a balance sheet detailing your earnings and expenditures. Make sure that focusing more on needs rather than wants is in your new year resolution.

3.    Review Tax Withholding and Payments:

Make sure you are following the latest tax policy. What you need to do at the start of the year is:

  • Go through the government’s tax policy.
  • Try not to withhold any payment that has to be delivered sooner or later.
  • Save yourself from the bulky and unexpected withholding tax amount at the end of the year.

4.   Retirement Plans:

In order to live a good retirement life, you should keep the following points in mind:

  • Start saving right now.
  • Open a separate retirement account to make sure the finances don’t mix up.

5.   Check Insurance Policies:

Now might be the perfect time to review the new insurance plans and policies  of the various insurance companies. Following points would help you in getting the right insurance plan:

  • Reevaluate your needs.
  • Think of getting an umbrella policy to cover all your needs i.e. homeowners, automobiles, disability etc.
  • Regularly review the insurance policies you already have.

6.   Have an Estate Plan:

Estate planning is now a significant thing. If you have a family and do not want them to lose all the assets on your death, have an estate plan. The estate plan must include:

  • Who will be the guardian to your children?
  • Who will look after your funds and their distribution?
  • Who will be your health and financial power of attorney?

7.   Build an Emergency Account:

An emergency account is an important need in today’s fast-moving life. In order to save yourself from the extra loss and stress, start building some funds in the emergency account to address the unforeseeable calamities.

8.   Managing Your Debts:

Managing your debts should be at the top of your to-do list in order to save yourself from stress and extra debt being piled up. For the first few months, increase your monthly savings by 20% to pay off the debt as soon as possible.

9.   Prioritize Your Goals:

Everyone has their own monthly or yearly goals. The most important thing is to prioritize them. Set the order and accomplish them in that order.

Have a balanced 2019!