As 2021 comes to an end, there are financial things to review to ensure that you start 2022 in a stronger position.
You may think, “I don’t have tons of money to invest.” No matter your financial situation, we can all do incremental investing or saving to add to our future nest egg.
Beneficiaries
One thing that I ask and remind my clients is: “Do you have designated beneficiaries on life insurance, investments, retirement plans, etc., be sure to update your beneficiaries. Do you have an ex that should no longer be a beneficiary? Guess what? If anything happens to you, they will be the legal beneficiary.”
Insurance
Have you updated your health insurance? If you have not, right now is the time to do it. Get on my calendar for review. Other insurance to review if your life insurance, home/renters, and auto.
Portfolio
Maybe you do not have investments and now may be the time to choose a financial planner to get you started.
If you do have investments, when was the last time that you reviewed? Has your financial planner guided you on changes?
Holiday Spending
How much can you spend this year? Do you need to change your budget?
Savings and Donations
How healthy is your emergency fund? Do you need to add?
A great question to review is: How much do you need to cover the cost of an emergency financial situation including loss of a job due to layoff or disability?
Are you able to donate to a local non-profit (that will be a charitable contribution on your taxes)?
Keep in mind that what you do this month can reduce your anxiety as you go into 2022. It can get you started or move you into a stronger financial position.
What's your opinion?