Ready to start the new year focusing on your financial well-being? Here’s a simple month-by-month list to get started and stay on track for 2025.
January – Draft a budget. Review last year’s expenses and see where you can improve for the new year. Find a template that is comprehensive and includes a savings goal. Managing cash flow truly is the key to gaining financial security. If you would like a copy of the expense worksheet, we created to help people prepare a budget, email service@wealthanalytics.com.
February – Organize for tax time. Start now and be better prepared for your tax filing in April. Gather the required documents in one place and schedule your appointment with your CPA. Determine the tax filing deadline and keep informed of the changes in 2025. If you are filing for an extension, payment is still due on Tax Day. We offer our clients an analysis of their tax returns and tax planning strategies.
March – Automate your investments. After you have saved for immediate needs and emergency situations, create a goal for contributing to your brokerage account(s). Set up an automatic contribution and investment plan to make investing easy and repeatable. Do this for both retirement accounts (401(k), IRA, Roth IRA, 403(b), 457) and taxable accounts (individual, joint, trust). Note any increases to contribution limits for 2025.
April – Review your debt. Prioritize your loans. Consolidate them or create a schedule to pay down debt quicker. Consider the interest rate on each loan as well as the return rate on your investments. Becoming debt-free is a big step towards financial freedom.
May – Educate yourself. Find two books or podcasts to read or listen to this summer. For a free copy of our book, email service@wealthanalytics.com. In addition to the benefits of applying this new education to improve your current situation, reading, learning, and other cognitive activities show promising signs of resisting dementia.
June – Review your budget. Are you staying on track? If not, adjust your spending for the remainder of the year. You still have 6 months to prioritize your budget.
July – Rebalance your portfolio. Take a risk tolerance test. Check your stock, bond and cash allocation and sell/buy to get back to your target risk portfolio. Do you need guidance on creating and monitoring a portfolio that meets your financial goals? Find a fee only fiduciary firm that delivers ongoing financial advice – watch this quick video to learn the difference that Registered Investment Advisors (RIA) Fiduciary firms provide vs. banks and brokerages.
August – Review your insurance. Check your deductibles on home and auto, as well as review any life insurance policies in place. Assess whether you are insured at the proper amount. Also, take this month to investigate other carriers to ensure you are getting the best rate.
September – Donations to Charities. Are you making them from your IRA as Qualified Charitable Distributions (QCD), gifting highly appreciated stock, or just writing checks from your checking account? Research the charities you would like to support this year and determine a giving strategy that has tax-saving advantages.
October – Review your passwords. At least once a year, take the time to change passwords and update usernames for cybersecurity protection. Consider adding double-factor authentication to all logins, even if not required. Do not share your information with others to avoid fraud.
November – Update your estate plan. Has it been over three years since your trust was reviewed? Have you moved or had changes in your family? Laws change and lives change. Also, double check your beneficiaries on each of your accounts. Consider adding a trusted contact to your accounts. This is a person who can be contacted if your custodian or financial advisor is unable to reach you (think: emergency contact).
December – Prioritize your retirement. Review your financial plan. How much did you withdraw for the year from IRAs and brokerage accounts? If you’re still working, how much did you save, and will it be enough? Find a fiduciary, fee only registered investment advisor to help summarize your goals and keep you on track.
Focusing on these financial topics, one month at a time, is a simple way to increase your financial wellbeing and make important adjustments needed to live an amazing and satisfying life.
If you are seeking professional help, Wealth Analytics is a fiduciary financial advisor team that helps you create a comprehensive financial plan and investment strategy for a meaningful and secure retirement. Schedule a complimentary meeting.
Editors Note: This article was originally published in December 2023. It has been updated to provide more comprehensive and up-to-date information.