The Financial Procrastinator's Checklist
There is still time to end this year on a strong financial note. Tackle these ‘must-do’ activities.
Save a bit more for retirement
Increase your bi-weekly contributions to your retirement savings plan by $20 each plan. That's the equivalent of two lunches and it really adds up. If you keep this up and earn a 7% rate of return compounded for 25 years it will equate to $19,000 in value. Supercharge this tip by doing the same thing to multiple retirement savings plans, if you have more than one.
Compare your progress with a net worth statement
Measure your net worth growth this year by comparing it to last year. Your net worth statement is a list of the value of all of your assets minus all of your liabilities. The amount that’s left over is your net worth and the goal is to grow it each year. How did you do compared to last year? What went right and what went wrong? For couples, this is a must read to grow your net worth together.
Focus on no more than three goals
Identify up to three financial goals (all of which should improve your net worth) that are achievable for the rest of this year. Any more than three goals and it will be hard to achieve. Make them specific and display them in a place you see each day like your bathroom mirror or on the refrigerator. Examples could be to find a new job that pays more, to pay down your line of credit by $10,000, to start saving for your child’s education or to stop fighting about money with your partner.
Consult with the pros to make a strong strategy
Together, with your financial dream team, pick a strategy to achieve your goals. Determine if you need to talk to a money coach or financial planner, sit down with your investment advisor, mortgage broker, insurance agent, lawyer, accountant, or lenders. Practical strategies could include going on a fiscal diet, learning how to invest well, changing your portfolio, budgeting basics or navigating difficult financial conversations with your love.
Don’t forget that it’s important to celebrate your financial victories, large or small, so that you’ve got momentum and motivation for the New Year.
