I’m in Puerto Vallarta recording this on vacation. I have just been talking to many women in the States and Canada about their New Year financial resolutions and goals.
So many people are focused on what’s happening in the economy. They’re nervous and concerned about it.
And what a great time to set some New Year financial resolutions and start looking at the upcoming year.
What can we do, even if the economy is not great, our businesses aren’t doing well, or we have more, different, or unexpected expenses?
It is an important topic. To complete this episode on time so you can listen over the holidays, I had to record it on vacation.
So that’s why the sound quality differs from my recording studio.
I hope you enjoy this episode as much as I did preparing for it and coming up with the insight to help you on your financial journey.
Transcript: Wealth Inside and Out® Podcast – 10 Rock Solid New Year Financial Resolutions
Hi, my name is Annette Bau (bah oo). I’m a Certified Financial Planner™ and founder of The Millionaire Insider®.
This is the Wealth Inside and Out® Podcast.
Free Retirement Planning Checklist
Today’s free resource is our retirement plan checklist. You can go to https://themillionaireinsider.com/rpc and access it.
This resource provides an overview of the actions you need to take to avoid worrying about running out of money and living your life on your terms in retirement. And that you can live the golden years versus the miserable, broke years.
We share insights in this free resource that many people don’t even think of.
And one of the most common concerns, especially with women, is running out of money.
This guide will provide you with the steps you need to take to start creating a plan so you can start enjoying your life and stop worrying about money again. Again, https://themillionaireinsider.com/rpc.
All materials and intellectual property are copywritten by the millionaireseries.com.
The information is not intended to replace any advisor or specialist or to provide you with any investment, financial tax, retirement, planning, or healthcare advice. All participants agree to hold millionaireseries.com and its affiliates harmless for results achieved or not achieved.
So, let’s dive into
10 Rock Solid New Year Financial Resolutions
Heading into the New Year is a great time to create resolutions for the upcoming year.
It is also a perfect time to review your financial priorities, including:
- Your spending plan
- Creating a plan to reduce or eliminate debt (including a plan to pay off debt, especially those with higher interest rates)
- Analyzing your investments
The beginning of the year is a perfect time to review your financial goals because financial wellness is often closely connected to physical and mental health.
It’s also a great time to combine it with your other resolutions and goal-setting. And it’s fun, even if money or numbers aren’t your favorite pastime. We will do this together, which will help make it easier.
Here is a sample of what you will learn today in
Financial Resolutions for the New Year
>> 4:30: Review Financial Goals
You will get questions to ask when you review your financial goals.
Specifically, you want to confirm that your current priorities are aligned with your goals.
>> 6:30: Evaluate Your Emergency Fund
You will learn what to review regarding your emergency fund that can increase your earnings.
Many experts believe we may see a slowing economy, so we must be prepared.
You will also learn if savings accounts are the best option for an emergency reserve.
>> 7:35: Pay off Debt
When paying off credit card debt, start with the high-interest-rate cards first. It’s amazing how many people share that they are paying off debt. When I ask if they are paying off the highest-rate credit card, they don’t know. You have to look into that.
If you’re already good at managing debt, consider taking steps to reduce, eliminate, or consolidate it.
What to do if you have high interest-bearing credit cards.
Reducing the number of credit cards you use can simplify your financial life and reduce money stress, which is essential.
It’s a good idea to run free credit reports annually to make sure there are no loans in your name that you didn’t take out.
>> 9:45: Save More and Spend Less
The magical financial freedom formula to secure a financial future and retirement you love.
Saving for retirement should be a top priority for most of us. It is likely be our most expensive cash need.
How to choose hobbies that support a secure retirement.
>> 10:00: Get Your Free Money
If you work for a company and they match on your 401k, this is called “free money” because your employer is giving it to you. All you have to do is invest a certain amount.
If you qualify, fund an individual retirement account. In addition, consider increasing the percentage you are saving personally.
>>10:30: Tips to Curb Spending
Examples include making coffee at home instead of purchasing a $7 latte from your gourmet coffee shop or packing a lunch instead of eating out daily.
Little things add up, and as I often share. I feel the little things wreak more havoc than the large purchases. Try to swap pricey hobbies for ones that don’t cost a lot of money.
Examples include hiking, yoga, reading a book, or walking around your neighborhood.
There are a lot of things you can do, so consider them.
>> 11:05: Review Your Asset Allocation
Are you considering retiring within five years? Or are you already retired?
If so, you may need to reassess your risks as you near retirement. You may need to lower the risk in your portfolio by moving into a more conservative asset allocation.
Today, you will learn what many experts recommend regarding the “right allocation” based on age and risk level.
And what you need to do if your growth assets have increased more than the other assets in your portfolio.
If so, you may need to reassess your risks as you near retirement. You may need to lower the risk in your portfolio by moving into a more conservative asset allocation. Examples include fixed income, such as annuities and bonds.
The recommendation would be 40% in equities, mutual funds, and stocks, if appropriate, and 60% in fixed-income bonds, annuities, et cetera.
>> 12:15: Considerations for Hiring an Advisory Team
A financial advisor can guide you in setting up a financial plan so you can reach your goals.
They can also help you assess your risk and create an investment and retirement plan to secure your financial future.
Regardless of where you are on your journey, your golden years (retirement) will be here before you know it.
You want to ensure they’re years you enjoy and not being broke or miserable like so many people in retirement.
A qualified advisor can help you set and measure short-term and long-term financial goals and ensure you are making progress toward a secure financial future.
Also, consider hiring a CPA if you don’t have one, and possibly an estate planning attorney to help you set up your estate plan.
Depending on your situation, you may need to hire additional members, but a financial planner, CPA, and estate planning attorney are a great start.
Always talk with a qualified advisor, ideally registered, so they have a fiduciary duty.
If you have a money mindset block, such as believing you’re not enough or that money is bad, a good money coach or a therapist can help you.
But you must know that a money coach, therapist, or financial coach differs from a qualified financial advisor.
Also, you can take a course or read a personal finance book to learn more about managing your money and improving your financial literacy.
Examples include our:
- Blog at https://themillionaireinsider.com/blog.
- Podcast at https://themillionaireinsider.com/podcast.
- Money Mindset Mastery Course at https://themillionaireinsider.com/mmm.
>>14:05: My favorite New Year Financial Resolution regarding money.
Why this resolution is so helpful in securing your retirement and financial future.
In my experience, this is one, if not, the most important goal you can set!
>> 15:05: Consider Updating Your Estate Plan
Remember the estate plan you did 25 years ago? Tax laws have changed; now is a great time to update them!
estate plan you did 25 years ago? Tax laws have changed; now is a great time to update it!
Real World Example
I want to share a real-world situation with you.
It occurred several years ago, and I said to my client, “Who is John Doe?”
He responded, “He was our best friend, a great guy. But he turned out to be an alcoholic and has spent most of his life in rehab. He could not kick his habit. And after several years, we just kind of lost touch.”
I asked, “How do you feel about him making financial decisions on your trust?”
The wife said, “What?”
I replied he would be a co-trustee if your partner died.
You’ve got to pay attention to those things, my friends.
Estate planning typically consists of a revocable trust, an ILIT (irrevocable life insurance trust), a last will and testament, financial and medical powers of attorneys, and even a healthcare proxy.
Sometimes, you’ll see a burial plan and other potential documents, depending on the laws of your resident state.
16:10>> Review Your Insurance Plans
You will access great questions to ask to confirm you have the right coverage or if you need to review your insurance plans.
Conclusion – 10 Rock Solid New Year Financial Resolutions
Determining how much money you need in retirement is critical.
Reviewing your financial resolutions each year can help to ensure you are on track and can make changes while you have time.
Most people think of New Year’s resolutions covering physical and mental health.
- A workout plan
- Diet plan
- Eating less junk food
- Better mental health, including meditating daily
- Drinking less
- Stopping smoking
- Spending less time on social media
The focus is often all about their mental and physical health. But what about your financial health?
An annual review should be a top priority, just like your annual physical or things you do for your mental health.
Take note of that and ensure that you are putting your financial well-being up with your mental and physical health.
Until our next episode, take one action that will help you create a secure financial future and retirement you love.
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Free Resource: Your Next Best Financial Step
Congratulations on taking another step to create a financially free life you love. Are you unsure about your financial future or that it’s in order? Or are you ready to stop worrying about money or possibly the fear of becoming a bag lady and ending up broke in retirement?
If you are ready to know your financial house is in order so you have a secure financial future, please go to https://themillionaireinsider.com/nsf.
Thank you so much for joining me for
10 Rock Solid New Year Financial Resolutions.
I’m Annette Bau (Bah oo).
All international copyrights are reserved.
Bye for now.