Financial Resolutions For The New Year

The year 2020 is almost here. It’s time to plan our New Year’s resolutions. You don’t need New Year’s to do financial planning, however, the beginning of the year is as a excellent time to review financial goals and improve our habits.

11 Resolutions To Get In Good Financial Shape

Any upcoming life events that require you to make changes to your financial goals, like having a baby, getting married or retiring? Revisit your goals and modify for new plans.

1. Financial Goals For 2020

2. Visit A Financial Adviser or Planner

Go to your financial planner before year-end to do tax planning. That may involve selling long term securities with capital losses to offset capital gains in order to reduce your upcoming tax bill.

3. Protect Yourself Against Unexpected Costs With An Emergency Fund And Insurance

You need to have an emergency fund as a financial safety net for times of unexpected expenses that are necessary and urgent.

Unplanned events such as sudden job loss, illness or surgery for your pet are fairly common.  Plan your emergency fund for six months or more as your goal.

Excuses Won’t Pay Your Bills

Along with having an emergency fund, you need to consider if you,  your family and assets are properly protected by insurance.

Insurance Is Necessary To Protect Family And Assets

4. Net Worth And Budget Are Key Tools To Measure Wealth

 Net worth is a snapshot of your financial condition. It is calculated using total assets, that is, what you own less total liabilities, or what you owe.

Total liabilities are what you owe based on your debt obligations, notably the balances on your credit card debt, mortgage, car loan and any other loans you have.

Net Worth Ratio = Total Assets Less Total Liabilities

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