It 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
Calculating your net worth
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;
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
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.
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 wellness
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.
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.
You don’t have to wait until the new year to start your financial plan; you can start today! with your New Year Resolution