What are your goals for the new year?

 

Taking account of your financial position will help you set some goals in the coming year. Consider the following checklist for areas where you are doing well and areas where you need to focus in the new year.

1. What are your financial Goals of 2012?
   1. Be specific
      1. Income
      2. Expense
      3. Savings/Retirement
      4. Other
   2. What are your spouse’s financial goals for 2012?
   3. Do your goals match or conflict?
2. Financial Health
   1. Estimating your annual income in 2012
   2. Knowing your expenses from 2011
   3. Profit or Loss?
   4. Are you spending ½ your annual income
      1. Leaving enough room for savings and retirement?
   5. Bank accounts
      1. Checking (50% of your income)
      2. Savings (10% of your income – until 6 months)
      3. Retirement (15% of your income)
      4. College Funds (after 6 months savings achieved – move to 10%)
3. Overall Financial Health
   1. Debt
      1. Types of debt – e.g. mortgage, car note, lines of credit, credit cards, school loans
      2. Repayment terms
         1. Term
         2. Interest Rate
         3. Tax detectability
      3. Consolidation, reduction, and elimination
         1. Which to pay off first
   2. Income
      1. What can you do specifically to increase your income?
         1. Overtime
         2. Additional sales/bonuses
         3. Second jobs
   3. Expenses
      1. Wants versus Needs
      2. Reducing overall expenses 10% (must cut from somewhere)
      3. Watch the creep
         1. Especially with recurring expenses
      4. Largest expenses:
         1. House
            1. Mortgage terms – can you refinance
            2. Paying down your mortgage early
            3. Repairs – DIY and being proactive
            4. Carrying enough insurance
            5. Car
               1. Buy/Lease/Finance
               2. Total cost of ownership – includes gas, insurance, repairs
               3. Insurance
                  1. Have you shopped homeowner’s, auto, health, disability?
                  2. Pay attention to coverage
                  3. Deductibles
                  4. Children
                     1. Health Care
                     2. Education
                     3. Activities
                     4. Keeping up with the Jones
                     5. Adult children working
                     6. Food
                        1. How much you eat out
                        2. Couponing
                        3. Where you shop
                        4. Bringing lunch to work
                        5. Entertainment
                           1. All want
                           2. Less expensive options
   4. Savings:
      1. Emergency Fund – 6 month’s expenses in an FDIC insured savings account
      2. Stock Fund – e.g. Fidelity account
      3. Education Funds – e.g. 529’s
      4. Retirement
         1. IRA’s and Roth IRA’s
         2. 401(k)
         3. Pension plans
         4. Social Security
         5. Savings
   5. Insurance:
      1. Life Insurance
      2. Homeowners
      3. Auto
      4. Disability – work paid or paid by you?
   6. Credit Report
      1. Have you pulled your credit report – annualcreditreport.com
      2. Check all information – names, addresses, accounts, etc.
      3. Fixing inaccuracies
      4. Disputing false information
      5. Rebuilding and recognizing what you can do
      6. It’s your report card on your trustworthiness.
   7. Necessary Documents
      1. Will – does it need to be updated?
      2. Power of Attorney
      3. Living Will
      4. Inventory of Home
      5. Pictures
      6. Safety deposit box – who knows where it is?
4. Lifestyle Changes
   1. First Job
      1. Use credit sparingly
      2. Get in habit of saving and investing
      3. Get insurance
         1. Health
         2. Disability
      4. Continue Education
   2. Changing Jobs
      1. Be careful of an income drop
      2. Financial costs of relocating
      3. Track all job search expenses
   3. Getting married
      1. Are you financially compatible?
      2. Set joint goals
      3. Financial arrangements
      4. Coordinate and maximize employer benefits
      5. Life and disability insurance
      6. Update and create wills
   4. Buying  a home
      1. Increased overall expenses
      2. You’ll be stuck in that location for 5-10 years (think about your job)
   5. Having children
      1. Setting priorities
      2. Budget, budget, budget
      3. Boost health insurance coverage before getting pregnant
      4. Check maternity leave at work
      5. Update your will
      6. Enroll your child in your health plan
   6. Starting a business
      1. No income for 1 year+
      2. Unexpected costs, expenses and time it takes to make it work
      3. Planning for emotional hurdles
      4. Replacing your insurance
      5. Do you need to arrange financing – e.g. home, car, etc.
      6. Retirement plan changes – need SEP or 401(k) etc.
5. THINGS TO DO IN 2012
   1. Self
      1. Education
      2. Health/Eating/Exercising
      3. Money goals
   2. Family
      1. Relationships
      2. Health/Eating/Exercising
      3. Time spent together
   3. Relationships
      1. Home
      2. Friends
      3. Family
      4. Work
   4. Finances
      1. Personal
      2. Family
      3. Teaching children
   5. Emergencies
      1. Smoke detectors and carbon monoxide detectors, fire extinguishers
      2. Family fire drill
      3. In case of emergency – where to meet, etc.
      4. Call 911
      5. First aid
   6. Where you spend your time?
      1. Teaching your kids – important life lessons
      2. Spouse
      3. Work
      4. Hobbies and Interests
      5. Other organizations
      6. What skills will you add?
   7. Living by the Golden Rule
      1. Improving how you behave
      2. Becoming a better person
   8. Getting rid of clutter
      1. Cleaning out the basement, attic, garage, office, kitchen
      2. Organizing
   9. Putting balance in your life
      1. Planning family vacations in advance to save on travel, etc.
      2. Planning outings
      3. Being spontaneous
      4. Adding additional purpose
      5. Contributing to your community in some way
         1. Becoming connected