Your most important new year’s resolution could be financial. With another new year coming up in just a few months, now is the best time to plan ahead before the calendar flips to January 1st. The 7th Annual New Year’s Resolution Survey found that many resolutions made in 2017 were focused on faith, family, and personal wellness.

Unfortunately, financial stability trailed far behind, with only 29% reporting financial considerations in their New Year’s resolutions. We’re hoping to help you change that this year by providing the top four new year financial resolutions to make for 2019:

Top 4 New Year Financial Resolutions to Make for 2019

New Year Financial Resolution #1 – Diversify Your Income Streams

• Does the bulk of your annual income come from one source?
• Is there one slice of the pie that dominates your other income sources?

It’s a good idea to diversify your income streams as much as possible so you aren’t dependent on one particular stream for 50% of your income.

Create a financial game plan to grow other income streams so that you increase your overall income and decrease your reliance on anyone source of income. 

This new year financial resolution is all about establishing financial security so you’re prepared if something happens to your primary income stream.

New Year Financial Resolution #2 – Get Organized and Stay Organized

Organizing your finances may be a task that gets put on the back-burner, especially when you’re juggling multiple priorities. There are plenty of online tools that make it easier than ever to get organized and stay organized for the coming new year.

Here are a few of our favorites:

• Mint: Mint shows you your financial balances, lets you pay your bills, track your investments, and more—all in one place.
• Shoebox: Shoebox helps you digitize and organize all of your receipts; plus it archives everything and is completely searchable.
• Buxfer: If you share costs with family members or a significant other, Buxfer allows you to neatly split expenses, create budgets and bill reminders.

Another helpful financial tip for staying organized is to  divide your financial documents between short-term and long-term.

Short-term documents could include files from the past year, such as bills, statements, tax receipts, health records, etc. Long-term files could include income tax records, inheritance papers, legal papers, reports from trusts, birth certificates, social security cards, stocks and bonds, mutual funds statements, etc.

Use the filing system that you think works best for you and stick to it!

New Year Financial Resolution #3 – Stop Neglecting Your Insurance Policies

Although most people don’t do this, it’s good practice to review your insurance policies annually.

What better time to make this happen than with the change of the New Year?

• Review your auto insurance, homeowners’ insurance, life insurance, business and even umbrella policies. The umbrella policy is particularly important to focus on because, as your net worth increases, your liabilities could increase.
• Check for lapses in any of your coverage and make sure you aren’t overpaying for a coverage that might be more affordable somewhere else.
• Beyond insurance policies, take a look at your wills or estate plans. Your beneficiaries or assets may have changed, so update these plans to ensure your will or estate plan remains accurate through the year.

New Year Financial Resolution #4 – Perform a Thorough Retirement Check-Up

Finally, meet with your financial advisor to review your retirement plan.

With a complete understanding of where you stand with your retirement savings, it’s possible you’ll find places to improve.

Review how much you have saved, how much you’re adding each year, and whether you’ll end up with enough savings if you continue your present course. 

US News recommends boosting retirement savings in the New Year, if possible.

Takeaway

Your financial stability impacts both your physical well-being and the well-being of your family. As you gear up for another new year, keep in mind these four important new year financial resolutions and check-points.

Want a professional and personalized year-end and year-ahead financial review? Contact our experienced financial planning and investment team at Hudson Companies to schedule a complimentary and confidential meeting.