Money Is Spent to Stop Procrastinating and Take Care of the Moment.
Fifty-four percent of Americans planned to make a financial decision for 2015. Saving money, paying off debt and improving spending continue to top the list, according to a new GOBankingRates survey . With only 8 percent of people actually achieving their goals, it might be time to change things a little.
This post was originally published on the GOBankingRates website .
Here are seven things you can do this month to make a positive impact on your finances throughout the year.
Finally create a budget
The decision to just spend less is too vague – you can never spend less if you don’t initially know what you are spending on.
Instead, make a commitment to learning how to stick to your budget. The great thing about budgets is that they are flexible – the budget you set in January will be very different from the one you get at the end of December. Life tends to throw balls and your budget will change with your life, so don’t get too hung up on the idea that you should stick with your first hit. Successful public sector employees know it takes time to find a working system, so use the entire year to perfect your budgeting skills.
See a Certified Financial Planner
Even if you don’t have a lot of money to save or invest in, the benefits of attending a Certified Financial Planner (CFP) outweigh the costs. A good planner will study your financial picture, discuss your goals, and help you develop a long-term financial plan for the game.
CFPs are often confused with investment advisors; investment advisors recommend investment products and manage portfolios, while CFPs research your finances more broadly and offer advice on budgeting, debt, tax planning, savings and more. A Certified Financial Planner can also help with property planning, which leads me to …
Make a real estate plan
Think you are not old enough or wealthy enough for real estate planning? Think again. If you have a spouse, children, elderly parents, a home of your own, a savings account, or an investment, you need to draw up an estate plan.
Estate planning includes everything from drawing up an advance directive of health care to appointing a guardian for your children and adding beneficiaries to your insurance policies.
When someone doesn’t do estate planning and then dies, their family ends up in inheritance court, which is costly and time-consuming. LegalZoom estimates that the will costs American families $ 2 billion a year, of which $ 1.5 billion goes to attorney fees alone. Real estate planning takes the hassle out of your loved ones and ensures that your wishes come true the way you planned.
Buy life insurance
If you passed away today, would your loved ones be able to financially survive? Will the mortgage be paid? Who will support your children? Who will pay for your funeral? A life insurance settlement can replace your income, help pay off debts, support surviving family members, pay for your child’s education, or even cover the costs of a funeral. Life insurance does not eliminate the problems that all families face when someone dies, but it does help financially take care of your loved ones when you cannot.
Recover your loan
Your credit score determines everything from whether you can get a car loan, qualify for a mortgage, or rent an apartment, so make 2015 the year you get your loan in top shape.
Good credit reports and ratings can save you thousands of percent and improve your overall financial picture. Get free annual credit reports from three major credit bureaus at Annualcreditreport.com so you know where you are, then plan how you will improve in the next year. It takes time to recover your creditworthiness, and many factors affect your ratings; here is a helpful guide on how to get started .
Balance your portfolio
If you’ve been ignoring your investments and / or retirement accounts throughout the year, then the least you need to do to offset this is rebalance at the start of the new year.
Your portfolio is weighted by different asset classes, and over the course of the year, the market value of each investment yielded a different return, which changed the weight. Rebalancing is essentially tweaking your portfolio – you shift the weight to reduce risk and maximize returns. The optimal portfolio balance is unique for each individual investor, and if you are uncomfortable with analyzing your portfolio yourself, seek the help of an investment advisor.
Use tax concession accounts
If you are not taking advantage of the many tax-free accounts at your disposal, then you are missing out on a lot of savings in 2015.
The most popular tax-exempt accounts include the 401 (k), IRA, and Health Savings Account. These accounts allow you to receive a deferred or tax-free increase in your money. Deferring taxation results in significant savings over time, and in some cases, pre-tax contributions can lower your taxable income. Talk to your employer about the 2015 start-up contributions (if you’re self-employed , you still have many tax-exempt accounts to choose from).