As a new year dawns, so do many new possibilities, to ensure you are making the most of your “fresh start”, it is encouraged to reflect on the past year and evaluate your financial goals with a fresh perspective.
Put time aside to take stock of your financial assets, budget, and investments – align them against your financial goals. Here are six steps to help you look with a fresh perspective.
1. Revisit Your Household Budget
Start the year by revisiting your budget. Assess your average monthly income, as well as your fixed and variable expenses, and determine your financial priorities for 2022. Understanding your top priorities is crucial, as this sources accountability to staying on the right treack. For example, perhaps you’re planning to save and contribute even more towards your retirement.
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If you haven’t done so already, now’s a good time to have a good look at your emergency fund, double, possibly triple-checking that you have sufficient savings for a rainy day. An emergency fund ideally has an accumulated total of between three to six months of living expenses.
Even if you consider yourself as “good about managing debt”, it has never hurt to plan for the unexpected. Consider taking steps to help reduce and consolidate it further. Reducing the number of loans you carry can also help simplify your financial life and ease money stress. You may want to ask your Financial Advisor about possible strategies.
4. Prioritize Your Wellness
Use the New Year as an opportunity to feel more in control, mentally and financially. Many companies offer financial-education programs and digital learning tools, which can supplement the advice you receive from a Financial Advisor. Using these tools can set you up to make better use of other workplace benefits, such as a retirement plan, equity compensation or group insurance, if available.
5. Make Sure You’re on Track With Your Goals
As you begin a new year, be sure to have an in-depth look at your financial portfolio, and consider whether you’re still tracking toward your goals, such as saving and investing for a comfortable retirement. If you have lost your way be sure to realistically re-align your financial path and goals with the aid of your financial advisor.
6. Consider Investing in Ways that Matter to You
Investing with a purpose alleviates the sense of ‘ extra financial burden’. Ensuring you consider investments that are aligned with your values, provides investors with a passion-driven investment that can add more impact to your investments while also potentially generating positive financial returns.
Speak to your Financial Advisor today!
Excerpts of this article was taken from Morgan Stanly, See the original article here