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Jumpstart Your January: Four Financial Items You Should Have on Your January To-Do List

Many people view January as a time to release any old habits and welcome in new, good habits, and when it comes to your finances, it’s important to do the same! Whether you think your finances are in great condition or need a whole lot of TLC, our financial planners here at Creative Financial Planning have four items you should have on your January to-do list.

Look into Rebalancing Your Portfolio

When it comes to rebalancing your portfolio, there are a few different factors you should take into consideration:

  1. Allocation (how much you have in stocks and how much in bonds)

  2. Risk tolerance

  3. Diversification

To figure out the first factor, you can quickly determine how to balance your investments by subtracting your age from 100. For example, a 50-year-old would invest 50% into stocks and 50% into bonds. For the second factor, you need to be honest with yourself and figure out what you’re comfortable with when it comes to investing—if the market swings, will you panic or will you ride it out? Lastly, diversification! This factor is easier to tackle with the help of a financial advisor since it’s important to invest in both large and small companies in the U.S. and throughout the world. Hiring a financial advisor will make it easy and stress-free for you to choose the right ones for you to invest in right now, as well as how much to invest into each one.

Take Advantage of Your Flexible Spending Account

Because the money in a flexible spending accounts (FSA) goes to waste if you don’t use it, it’s important to not forget about it when it comes time to pay for healthcare items. To help keep these funds top of mind, you may want to create a spreadsheet of the different routine medical visits you do throughout the year and medications you use on a monthly basis. Once this sheet is complete, you can note which ones you’d like to use your FSA dollars on so they don’t just dwindle away.

Put More Towards Retirement

No matter what age you are, this should ALWAYS be a high priority on your to-do list. If you have an employer match 401(k), try to save enough so you get your full employer match. However, even if you don’t have a match or 401(k) plan, you can still save towards retirement by simply scheduling a recurring auto-deposit into your Roth IRA every paycheck.

Set a Budget and Stick to It

We know, we know—this piece of advice is harped on time and time again…but have you actually done it? And if you’ve created a budget, have you actually followed through on it? If not, then this is the year to do so because it really can improve your financial health and peace of mind! Whether you want to write it out or type it up in a color-coded sheet, it doesn’t matter—just be sure to include the following:

  • Fixed expenses (mortgage, rent, car payment, insurance, internet, cable, utility bills, streaming services, etc.)

  • Your monthly income (after taxes)

  • Other expenses (dining out, morning coffees, gas, groceries, etc.)

After this budget is created, if you discover that you don’t have enough money left over, it may be time to consider asking for a raise, switching jobs, or looking into side hustles.

Now that you know what should be on your financial to-do list this month, it’s time to start checking them off, and the financial advisors here at Creative Financial Planning are here to help you do that! Give us a call today to see how we can help you turn your financial dreams into a reality.


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