The start of a new year is a great time to not only reflect on the previous year but also to think about what you would like to accomplish in the upcoming year. It’s true that to many people a New Year’s Resolution is often nothing more than a wish-list of self-improvement and related goals (such as finally quitting smoking) which are often left unfulfilled. Unfortunately even those who do set goals and accomplish them throughout the course of the year often forget to include financial planning in their new year planning process.
It’s usually a matter of perspective and visibility. If you follow the tradition of setting New Year’s Resolutions what thought process do you use? It’s easy to find yourself thinking about only what’s visible and at the forefront of your mind.
For example when I was a teenager my goal was to work out every week so I could expand my strength, and more importantly the size of my muscles. Of course I’d often make personal finance related goals as well, but they were usually vague and generic. As an example I’d often make a goal to save up enough money to buy the latest and greatest video game that all of my friends had.
The point I’m trying to make is twofold:
- Make achievable and specific resolutions that can be easily tracked.
- Don’t forget about money. Always take a look at your financial situation and where you’d like it to be at the end of the following year.
I think I’ve mentioned before how I think it is important to do, at the very least, a semi-annual checkup of your finances to make sure they are in order. Well there’s no better time than the start of a new year to look at your situation and make sure all of your ducks are in a row. As always if you have any comments or questions please feel free to contact me or leave a comment below!