New Years resolutions pass beyond the gyms, weight losses, dry January, forgiveness, and dedications to trying new things. January is Financial Wellness Month, and there are 5 goals you should take into this new year.
- Invest in yourself – people like to talk about budgeting and savings. While those things are important, raising your income potential can be even more impactful. So, if you are looking to move up the ladder, start your own business, or grow your business, remember to invest in yourself. That can be in further education, buying a book, listening to a podcast, taking a class and getting a designation or specialty, hiring a coach or mentor, or even taking a well needed break to think, exercise, and refresh those brain cells.
- Money doesn’t buy you happiness, but financial security surely brings a different level of peace into your life. Do the planning to determine what steps you need to make to become financially independent. If it is complex financial software with an advisor, or an excel spreadsheet in your pajamas, little planning is better than no planning. Do this at least once every year to keep on track with your financial independence goals!
- Dollar Cost Average into your savings and Up your contributions. If it is to savings, 401k, or education, January is the time to up your monthly contributions to take advantage of moving markets. When you put a fixed amount into investments over periods of time, we call that dollar cost averaging. Meaning you are averaging the cost you buy into an investment by purchasing at different prices as opposed to trying to time the market. This is a proven method that helps novice investors to the sophisticated investors succeed over time. If you have been doing this, up your contributions by 5%, 20%, 100%, whatever you feel you can comfortably add to your savings to stay consistent and not feel the pinch of being short on money
- Pay off your credit cards because interest rates are high! While we know credit card rates are generally high interest rate instruments, now that interest rates have risen they have risen too! We like using credit when credit can be managed within your budget. Buy now and pay later can cost you money that should be going into your savings and upping your contributions.
- Pay attention to your cash! If you have cash that isn’t either sitting in a high yield checking, money market account, or is being dollar cost averaged into investments, you are doing your quest for financial independence an injustice and are taking the local train 20 stops as opposed to 4 stops on the express train.
“Follow these rules you’ll have mad bread to break up”
-Notorious BIG
Disclosure:
Green Ridge Wealth Planning, LLC is a registered investment adviser. The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment/tax advice. The investment/tax strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment/tax strategy for his or her own particular situation before making any investment decision(s). You are responsible for consulting your own investment and/or tax advisor as to the consequences associated with any investment.
The opinions referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions and may not necessarily come to pass. Any opinions, projections, or forward-looking statements expressed herein are solely those of the AUTHOR, may differ from the views or opinions expressed by other areas of Green Ridge Wealth Planning, LLC, and are only for general informational purposes as of the date indicated.