Financial New Year's Resolutions You Can Keep (Part 2 of 2)
Last week, I talked about calculating your net worth, creating a monthly budget, and about resetting and rebalancing your retirement accounts and investment portfolios. Here are some more things you can do to insure 2018 is your best financial year ever.
Pay Down Your Credit Cards
If you're one of the many who owe money on your credit cards, you really need to take a look at how much you can honestly afford to pay each month. If possible, it will be really helpful and go much faster if you try not to charge more on those cards and live within your means.
Review Your Monthly Savings Plan
In addition to your retirement accounts, it's important to have money set aside for emergencies, your children’s education fund, holiday gift accounts, and vacations. It’s always important to set aside money for fun!
Review Your Credit Report
Since you're entitled to three free credit reports each year, it is important to take the time to review them. Errors are common and can adversely affect your finances in the form of higher interest rates on loans and credit cards. You will want to take the necessary steps to repair any negative items on your report. Always check the terms and conditions when requesting a report, as some companies charge a fee.
Review Your Life Insurance and Disability Insurance
Your insurance needs will change as you get older. You will need to think about and compare how much insurance you need to what you currently have. Most employers offer life insurance as a benefit, but it probably isn’t enough if you have a family. You may also need to determine whether term or permanent life insurance is best for you. At some point, decide if and how much disability insurance coverage is best for you.
This may sound like a lot of work, but there are professionals available to guide you and help you meet your financial goals. As with other things, be wary of setting unrealistic goals. It’s a good idea to maintain a checklist so you can make necessary adjustments throughout the year!