Have you thought about your financial situation recently? If not, now is a great time to do so before 2023 begins. Many individuals will create New Year’s resolutions in January to do better in some way—use this time to strategically think about what your new path to financial freedom may look like.
To get you on the right track, use this blog as a checklist to review independently or set up a time with a KerberRose Trusted Advisor for guidance. You can also check out Part 1 of KerberRose’s End of the Year Financial Checklist for more ideas for year-end financial planning.
Holiday Budgeting. Although we are in the thick of the holiday season, developing a holiday budget for next year can help alleviate the stress of overspending and impulse purchasing. One way of budgeting these funds is to set up a sub-savings account at your institution. You may be able to set up multiple sub-savings accounts if you are looking to budget for other expenses like auto repairs or back-to-school shopping. Having these funds separate from your regular savings account can help break up your money and show what you have set aside.
Create an Emergency Fund. Creating an emergency fund account can also be a great budgeting tip. An emergency fund is a pool of money you set aside every paycheck each month and refrain from spending until the time is needed. Life happens, and unforeseen circumstances can arise, like medical emergencies, job loss or any other substantial expense. Having funds set aside can better prepare you for those surprises. You can create this fund by opening a sub-savings account as stated before. Having this money easily accessible will play a principal role in the “surprise” factor—you never know when you’ll need it, so having it readily available is crucial.
Update Your Beneficiaries. A beneficiary is a person who will inherit your life insurance, pension, IRA, etc., if you were to pass away. People may want to change their beneficiaries if they get married, have children or for any other personal reason. You can update your beneficiaries whenever you’d like and as many times as you’d like. Things happen in life, and it’s a good rule of thumb to stay prepared. Although there aren’t time restrictions on when you have to change your beneficiaries, you should know who yours are and if you need to update them soon.
Go Over Your Insurance Policies. A lot has likely changed in your life over the year. You may have moved, purchased a new vehicle, had a child or made other significant life changes. Make sure your insurance policies reflect these changes. Another reason you may want to review your policy is when year-end changes happen, such as premium increases. With inflation in our economy today, premium increases are probable, although sometimes it could be a mistake. Check with your provider about changes happening before renewing your policy and being overcharged.
Pay Off Credit Cards. There is no silver lining to perfection when paying off credit card debt. Everyone’s situation is different depending on needs, income and goals. Regardless, paying off your debts is a step in the right direction toward financial peace. Whether you want to pay off the card with the highest APR or the lowest balance, find which payment plan fits your needs and stick with it.
No matter where you lie in your financial journey, KerberRose is here for you. Reach out to a KerberRose Trusted Advisor today for guidance on the next steps toward financial wellness.