ypfgIt is time for your new year resolution you can keep, If you carried out your year-end financial review then you are in the right space for the financial new year resolution. As the year is wrapping up there are a few things you need to do to be financially ready for the new year, this includes
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Calculating your net worthÂ
Your net worth is the amount of money that you have after calculating your assets and liabilities. It is about time to take stock of everything you own and know your financial standing to help you make clear decisions.
Calculating your net worth is a useful exercise that can help you understand your financial situation and identify areas for improvement. Here’s how to calculate your net worth:
- Gather your assets: Make a list of all of your assets, including your savings accounts, investments, and any property or other valuables you own.
- Determine the value of your assets: For each asset, determine its current value. For savings accounts and investments, this may be the current balance. For property and other valuables, you may need to use an online tool or hire a professional appraiser to determine their value.
- Gather your liabilities: Make a list of all of your debts, including credit card balances, student loans, and any other debts you owe.
- Calculate your net worth: To calculate your net worth, subtract the total value of your liabilities from the total value of your assets. The resulting number is your net worth.
For example, if your assets are worth a total of $100,000 and your liabilities are worth a total of $50,000, your net worth would be $50,000 ($100,000 – $50,000).
As a matter of fact, calculating your net worth can help you understand your financial situation and identify areas where you can improve, such as by paying off debts or saving more money. It’s a good idea to recalculate your net. As soon as you know your net worth the next thing to do is;Â
2. Updating Your Savings Goals
Having money in an account you can easily access is tempting, and you do not want to end up tempting yourself after the good work you have done all year. It is very easy to spend money you have access to, so this is what you should do instead. Keep that money in an account that you will think twice before withdrawing, such as a wallet on your high-yield saving account from your favorite provider.
Also, set an amount that would be automatically removed from your account and sent to that savings account (auto-invest or autosave)
3. Making a Plan To Pay Down Debts
If you have multiple debts and are struggling to keep up with your payments, it’s important to create a plan to pay them down. Here are some steps you can take to make a plan to pay down your debts:
- Gather all of your debts: Make a list of all of your debts, including the creditor, interest rate, and minimum monthly payment for each one.
- Prioritize your debts: Consider which debts are most pressing, such as those with high-interest rates or late fees. Focus on paying these debts off first.
- Create a budget: Determine how much money you have available to pay down your debts each month. This will help you decide how much you can afford to pay towards each debt.
- Consider a debt consolidation loan: If you have multiple high-interest debts, a debt consolidation loan may be a good option. This type of loan allows you to combine all of your debts into one loan with a lower interest rate, which can save you money in the long run.
- Negotiate with creditors: If you’re having trouble making your minimum monthly payments, reach out to your creditors to see if they can offer you a lower interest rate or a temporary payment plan.
- Seek professional help: If your debts are overwhelming and you’re not sure how to pay them.
4. Rebalancing Your Portfolio
As we all know, the market for your portfolio always has its ups and downs. And this year has had it fair share, Some sectors overperform, and some sectors underperform. Chances are that the sectors that did the best last year may not enjoy a repeat performance this year—and, of course, 2022 was pretty grim for most of them.Â
By rebalancing your portfolio to its original or updated asset allocation, you take steps to lock in gains from the sectors with the best returns and purchase shares in the sectors that have lagged behind last year’s leaders. This is one aspect that is important in your new year resolution.
5. Prioritize your wellnessÂ
The new year resolution can be an opportunity to continue prioritizing your personal and financial wellness. Consider taking advantage of any employer wellness resources for physical, mental, or financial health.
Taking care of your physical and mental health is important for overall well-being and can help you lead a more fulfilling and productive life. Here are some ways to prioritize your wellness:
- Exercise regularly: Engaging in regular physical activity can improve your physical health, reduce stress, and boost your mood. Find an activity that you enjoy and make it a part of your routine.
- Eat a healthy diet: A well-balanced diet that includes a variety of fruits, vegetables, and whole grains can support your physical and mental health. Avoid processed foods and sugary drinks, and aim to eat regular, balanced meals.
- Get enough sleep: Adequate sleep is essential for physical and mental health. Aim for 7-9 hours of sleep each night and establish a consistent sleep routine to help you get the rest you need.
- Manage stress: Chronic stress can have negative effects on your physical and mental health. Practice stress management techniques such as deep breathing, meditation, or exercise to help you cope with stress in a healthy way.
- Stay connected: Social connections are important for mental well-being. Make time to spend with friends and family, and consider joining a group or club to connect with others who share your interests.
By prioritizing your wellness, you can improve your overall health and quality of life.
6. Consider Investing in Ways That Matter to You
Everyone has that one thing they value the most when it comes to investing, from stocks to mutual funds, fixed income, real estate commodities you name it. As you make plans for the new year after reviewing everything you’ve done this year, ensure that they align with your values.Â
You don’t have to wait until the new year to start your financial plan; you can start today! with your New Year ResolutionÂ
