New Year’s resolutions are famous for not being kept throughout the year. With that in mind, try setting some goals this year that you know you can keep. With most of the holidays behind you come January 1st, it might be an ideal time to review your finances and make some new financial goals to start the year off right.
Review Your Retirement Plan and Make Some Changes
Have you looked at your retirement plan lately? It could be that it’s been quite a few years since you’ve looked over your accounts or reviewed how much you contribute annually. This January, ask your Portland financial advisor about how much you’re saving and what you can do to put more money away. If you have access to a 401(k), 403(b), or 457 plan at work, review how much your employer contributes and see if you’re making regular monthly contributions yourself. If you aren’t, ask your employer to withhold a portion of your monthly salary. The fastest way to add to your accounts is to make consistent deposits monthly. This goes the same for any other retirement accounts you might have, with your employer or independently.
How Much Debt Do You Have?
Debt can be an ugly thing and even a little depressing after the holidays have come and gone, but it’s better to deal with it now rather than letting it get out of control. First of all, figure out exactly how much debt you have and who you owe. Then, make a payment plan for the most important debts and chip away at them month by month. If you have larger debts, try paying the minimum for now while you take care of smaller debts and when those are paid off increase your monthly payments in order to get rid of large debt faster.
Rebalance Your Investment Portfolio
At the beginning of the year, contact your Portland investment advisor and ask to review your portfolio. Perhaps it’s been a while since you’ve rebalanced and it’s time to reallocate your assets. There is a good chance that the sectors you invested in last year are not doing as well this year. Talk over your options with your advisor and see what new sectors might be open to you. Take steps now to lock in gains from markets with better returns and keep an eye on your portfolio throughout the year.
There are also a few other financial goals you can set that don’t take quite as much time an effort. Maybe you want to make it your goal to review your credit score, or even pay an extra $20 on your credit cards every month. Whatever it is; now is the time to remember the highlights of last year and look ahead to the new with optimism and determination.