PREPARING FOR
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ow that the holidays are behind us and we are gearing up for the new year, the pressure is on for New Year’s resolutions! The new year is a great time to set new goals and check in on your progress towards existing goals. We encourage you to think about your financial goals during this process. It is not a bad idea to periodically revisit your personal finances and financial objectives.
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HERE ARE A FEW SUGGESTIONS: CREATE A BUDGET. There are many different financial planning programs available today to help you create a budget as well as an overall financial plan. These platforms range from simple calculators to complex, comprehensive platforms that your financial advisor may utilize that can automatically update balances daily. Why are there so many tools? Because this is such an important yet neglected task. Make 2022 the year you tackle your budget. ESTABLISH AN EMERGENCY FUND. As part of your overall financial plan, you will be asked to establish an emergency fund. It is recommended that you have at least three months’ worth of living expenses sitting in a money market. If you are self-employed or
have an erratic income, you should have six to nine months set aside. Don’t let lessons from the pandemic go to waste! Make sure you have rigor around your emergency fund. REVIEW YOUR RETIREMENT PLAN CONTRIBUTIONS. If you are fortunate enough to have a retirement plan offered where you work, make sure you are making the most of it! Many people only save enough to get their employer’s matching contribution, if there is one. Instead, recognize that the real power in these plans is your ability to save for your own retirement on a tax-advantaged basis. Although the maximum amount you can save will vary by the type of retirement plan you are in, for 2022 participants in a traditional
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