Financial Steps You Should Take in January
The countdown is over, champagne glasses are empty, and holiday sweaters are on sale at huge discounts. 2015! And do you know what that means? It’s time to start working on all those lofty decisions you have made.
Whether you are looking to pay off your credit card debt or save on a tourist trip around the world, we want to help you with that – with a small financial burden.
So, kick off your 12 months of financial progress with these first five, covering everything from budgeting to taxes. Here is a year in which you will (finally) feel less stressed and more confident with your money.
Review your budget
You should consider changing your budget every month. But this can be especially important at the start of a new year, as you have the opportunity to analyze what worked (and what didn’t) in the previous 12 months.
Start by reviewing your 2014 spending and compare it to the plan you implemented last January. Are there areas where you spent more or less than you expected? Use this information to plan ahead for 2015. And don’t forget to factor in non-monthly needs like insurance premiums and home maintenance.
Pay your tax bill if you are self-employed, owning a small business, or freelance
January 15 is the deadline for paying taxes for the fourth quarter of 2014. Once you’ve got it taken care of, help organize the rest of 2015 by setting quarterly payment reminders this year as well.
Set new savings goals
Think about your personal financial priorities for this year: Are you hoping to buy a home with a large backyard in the suburbs? Starting a new side business ? Figure out how much you need to spend, and create a separate savings account for each goal, so it’s easier to track your progress along the way.
Plan your 2015 travel budget
Planning to enjoy Dodge this year? Make a list of upcoming excursions , whether it’s a trip home for vacation or to Mexico for a wedding, and start setting aside for your designated travel fund. But remember: your financial priorities – such as saving for retirement, building a contingency fund, and paying off debt – should take precedence over any getaway … no matter how good this beach getaway sounds.
Find a money mentor
It’s perfectly normal to feel overwhelmed by the financial goals you have set for yourself. But you can boost your confidence by talking to someone closer to achieving those goals. Schedule an “interview” with this person to find out exactly how she got to this stage of her money life and how she overcame any potential obstacles to success. Ideally, you will walk away feeling stronger in order to make your dreams come true.
Your financial affairs in January 2015 | LearnVest