You’ve resolved to get a handle on your finances in 2020, but will that determination wane by March? With over 80% of people failing to realize their New Years resolutions, it’s likely that you’ll become overwhelmed with checklists and budget-tracking within just a matter of months.
That’s why Tony Steuer, recognized authority on financial literacy and author of GET READY! A Step-by-Step Planner for Maintaining Your Financial First-Aid Kit, suggests ONE simple action item each month that will contribute to an overall healthier financial life. This will make things simple while keeping you accountable year-round.
Below are Tony’s suggestions on the MOST important action item each month to keep your finances in shape:
- January: Review your budget and cash flow as well as your net worth statement. This lets you see how you did last year and if you want to make any changes for the new year.
- February: Organize tax documents and receipts.
- If you’re feeling ambitious: Organize all financial documents from prior year to prep for taxes. It’s like spring cleaning for your finances.
- March: Review your investments and allocations, making sure you are still on track for major goals such as retirement savings.
- April: File federal and state income tax returns.
- May: Order credit reports.
- June: Review retirement plan contributions and projections to see if you are on target
- July: Hold a family financial meeting. Review old goals and set new ones.
- August: Review estate plan and estate planning documents to make sure they are current. This includes wills, trusts, and advance directives.
- September: Review insurance policies to prep for November by making sure coverage still meets your needs and preparing to adjust accordingly.
- October: Review your financial first aid kit
- November: Open enrollment for group employee benefits and Individual Health Insurance begins.
- December: Wrap up any loose ends from your financial year.