The New Year is a great time to think about what you want to do or accomplish for the upcoming calendar year. It is also a time to calibrate and “re-center” your financial plan.
Here are 5 regular rhythms that I recommend building into your annual financial check up in early January.
- Net worth– Calculate your current net worth and keep a historical net worth statement to track your progress
- Retirement Savings– set an annual amount that you want to save for retirement and automate
- Debt– review your debt and develop a payoff plan
- Goals– Update your short (< 2 years) and long term (2+ years) goals
- Rebalance– your investment portfolio if necessary
Bottom line is to be cautious about setting too many or unrealistic financial goals. Tip: be simple, clear, and concise with your goals.