Happy New Years! 2013 is here and it’s time to make some New Years resolutions. Here are ten simple resolutions you can stick to that will make your life better.
Check and update beneficiaries for financial and insurance accounts
This is especially important if you’ve had any children in 2012. Log on to your bank, retirement, and insurance accounts and update your beneficiaries. Remember that beneficiary selections supersede anything you put in your will (if you have one).
Increase your 401(k) contributions by 1%
Chances are, you’re not maxing out your 401(k) contribution and saving enough for retirement. This year, increased 401(k) contributions serve as a double whammy as the fiscal cliff may increase your tax obligations. Increasing your 401(k) contributions will help lower your taxable income and boost your retirement income.
Fund an IRA
Funding an IRA will help you achieve your retirement goals. Read more about IRA’s in this primer.
Check your credit report
You should check your credit report every four months. You can do so for free at the three major credit reporting agencies by visiting AnnualCreditReport.com. This site is the only true free credit report website sponsored by Equifax, Experian, and Transunion. They will try to upsell you on credit score or credit monitoring services, but don’t bite. Entering payment information or subscribing to a service is not required.
Keep track of your income and expenses
I am a big supporter of manually tracking your income and expenses. It’s the only way to truly get a grip on where you are spending your money. I recommend using Quicken to manage your finances. I’ve been using it for years and credit it for part of my financial success.
Bring your lunch to work one day a week
You’d be surprised how much you spend dining out. It is expensive! Unless you make an inordinate amount of money, make an effort to bring lunch to work at least one day a week. That’s doable. If you can keep it up, try adding the amount of days you do it. You just might find that you will save money and shed some weight.
Patronize your local library
If you don’t do it already, go check out your local library. You will save a ton of money on books that you’re probably not going to read more than once. Plus, many libraries have great digital resources now. Most of them have free e-books, audio books, and access to premium resources like Morningstar research.
A lot of libraries took a huge budget cut during the financial crisis. They could really use your patronage to prove that there is a demand for their services.
Sell or donate stuff
Make some time to clear out a room or your garage. You’ll find stuff that you haven’t missed in a long time that could use a loving home somewhere else. Large donation centers, like Goodwill, will even schedule a pickup so you don’t have to find a truck to lug any large items out of your house.
If not, try selling things on eBay, Half.com, or Craigslist. Old electronics in good condition like cell phones and video games actually retain their value quite well.
Take a walk
A lot of people renew their commitments to exercise this time of year. It’s only natural after indulging ourselves during the holiday season. Many fail because they start working out and it hurts! Do yourself a favor and start slowly. Make a commitment to take a walk once a week. It’s a great way to walk the dog, catch up with loved ones, or just enjoy the outdoors in solitude. You’ll save money in health care costs in the future.
Plan a trip
Finally, plan a trip! Even if it’s just a short day-trip, get out there and experience something new. Check out a new restaurant, see a national park, or visit a city you’ve never been to before. Going on a vacation will recharge your spirit and help remind you why you’re working so hard to get out of debt.
Talk to me, Goose.