With the New Year right around the corner, many of us are trying to figure out what our resolutions will be for 2021. For many, these usually include improving mental and physical health, and while we believe (and also love) focusing on these, here at Creative Financial Planning, we believe financial health is just as important. So, to help you have the best year yet, here are four financial resolutions to focus on in the New Year, so you can make 2021 your healthiest mental, physical, AND financial year yet!
Get into the Habit of Contributing to Your Retirement
It’s never too early to start investing in your future, and although it may not seem like a priority when you’re in your 20s or 30s, these are the prime years to get into the habit. If you’re already past those decades—and still don’t contribute to your 401(k), Roth IRA, or whatever retirement account you have setup—make 2021 the year to break that habit and get into the swing of planning for your golden years.
Determine Your Investment Risk Tolerance and Start Investing
Investing in stocks can be a great way to grow your wealth and improve your financial independence. However, everyone’s comfort level with investing is different, so before you follow through on this resolution, be sure to figure out what your investment tolerance level is. Here are steps to help you do this:
Establish the importance of reaching your financial goals
Figure out if you have any large purchases coming up in the near future (IE buying a car, purchasing a home, paying for college, etc.)
Decide on when you think you’ll want to use the money you make from your investments
Determine how you will/do react to different markets (IE do you/would you sell as soon as the market declines?)
Once you find what your investment risk tolerance is, it’s time to invest! Whether you find that you’re willing to be aggressive or more reserved, a financial advisor can help you invest your money in the most strategic and rewarding ways. Plus, they’ll also implement investing tactics you may not know about, such as dollar-cost averaging, so you won’t have to worry about researching and executing them, helping make 2021 your easiest—and hopefully most lucrative—year yet!
Prepare for Whatever Life May Throw Your Way
If 2020 has taught us anything, it’s that life is unpredictable. In order to best prepare for any health changes that may come your way, it’s crucial to invest in life insurance. This is especially important if you’re the sole provider for your family. So, if you don’t already have life insurance, make sure this resolution is at the top of your list for 2021.
Make Your Life Easier and Bring on an Expert
Like most New Years resolutions, following through on them is so much easier when you’re not doing it alone—financial resolutions are no different! By hiring a financial advisor, you’ll be making your life easier while also helping to make your resolutions that much more successful. When searching for an advisor, opt for someone who:
Can create financial plans that are customized to your lifestyle and financial goals
Has the capability to provide financial planning and wealth management services
Provides honest and consistent communication
Offers fee-based services
Takes the time to listen to YOUR life and financial story
Are you ready to put these financial resolutions into action in 2021? If so, the advisors here at Creative Financial Planning are here to help you accomplish them! Ring in the New Year by giving us a ring at 845-634-6050 or visiting our consultation page to schedule a COMPLIMENTARY meeting with one of our advisors.