It is somewhat traditional to make resolutions at this time of the year and I heard recently that 88% of them are broken within the first month or so.
Whether that is correct or not it is still worth thinking about the things you would change in your life either by stopping doing some things or indeed starting doing something.
Who knows, it could be life changing.
If you want to consider some financial resolutions for the New Year then certainly one or more of the following five action points can do nothing but good for you and your family.
1 – Make a Will.
Many adults don’t do this. It is almost as if the act of making a Will means you are going to die!
But making sure that what you want to happen to your estate actually does happen on your death can be delivered by this important legal document.
Basic things like who is going to take care of young children or even what type of funeral you want can all be covered off by the Will. Speak to a Solicitor and get it done now!
2 – Have a budget plan.
Work out what you spend and what income you have and start planning to live within your means.
If you have debt then work out a strategy for repaying it and calculate the date when you are going to free from debt.
Note that debt never gets dealt with if you don’t open the envelopes you get from your credit card company or bank. Ignoring it is not a viable option!
3 – Pensions are not the most boring subject in the world.
In my view that accolade goes to the X-Factor or Strictly! I know many might disagree.
Work out how much you are going to get at the point when you want to retire and how much extra you are going to need and then you have the chance to calculate how much extra you need to save.
4 – Despite what I said above, we all know that we are going to live for ever. We are after all ‘immortal’.
But just in case, make sure that you have enough life assurance cover so that your family are able to pay the bills and have the life that you would have given to them if you were around to do so.
5 – Get the answers to the important financial questions;
When will I be able to afford to retire? Will I have enough money to last for the whole of my lifetime? Am I taking too much/too little risk with my investments and savings?
How much inheritance tax will my estate have to pay and can I somehow reduce that payment? Will I be able to afford to educate my children/grandchildren?
If you resolve to deal with one or more of these issues then I wish you a Happy New Year and a prosperous 2013.
Photo credit: Flickr/Stephen & Katherine
