WASHINGTON —聽If you鈥檙e like me, it鈥檚 hard to keep your New Year鈥檚 resolutions. You may start off strong and have good intentions, but the demands of everyday life get in the way, or the goals become overwhelming.
I find it鈥檚 easier to set and complete smaller goals. With that in mind, I鈥檝e laid out the following 12-month calendar to help you get your financial house in order. Follow this guide and come Dec. 31, 2015, you鈥檒l have achieved big things.
January: Commit to a savings goal
Whether it鈥檚 contributing to your 401k, starting a fund to cover your living expenses in an emergency or reallocating some of your splurge spending to savings, decide on an amount to save every month.
Similar to losing weight, you鈥檒l be more successful and stick to the plan if you have a goal amount and make it automatic. Have a certain percentage deducted from your paycheck to invest in your retirement plan at work, or set up an automatic savings plan at your bank.
February: Get your tax information in order
Start early so you aren鈥檛 rushing around at the last minute collecting the information you need to file your taxes. You鈥檒l need to do this whether you work with an accountant or file yourself. TurboTax has a comprehensive that you can download for handy reference.
March: Protect your online personal financial information
Sony, Target, JP Morgan, Home Depot, ebay: Every week we鈥檙e hearing about the latest online security breach. This 鈥淚nformation is Beautiful鈥� infographic is a powerful depiction of the . While you can鈥檛 prevent someone from getting your information when companies that have it are hacked, there are things you can do to protect yourself from these predators.
Sign up for online credit protection from or . Use 2-Step Verification for your email accounts. This helpful explains what it is and how to set it up. Stop using the same password for all of your online accounts. Instead, try one the password managers like that will help you to generate strong passwords or that will generate new passwords and securely store them.
April: Plan for your retirement
Review your 401k and account statements to know what you have saved so far. Then use one of the many online calculators like this one from or to determine how much you鈥檒l need in retirement. Don鈥檛 forget to add your estimated Social Security benefit. Just sign up at the to retrieve your information online.
May: Review your will
If it鈥檚 been more than a few years since you dusted off your will, or you have had any changes in your life such as marriage, divorce or children, then it鈥檚 time for a review. Give it a good read to make sure that the choice you made about who gets what are still relevant. Don鈥檛 have a will? Read my 草莓传媒 article: to learn more.
June: Read a good personal finance book
Summer is a great time to learn something new especially if it improves your knowledge of money. So here鈥檚 a short list of my all-time favorite books that I give to my clients:
by George S. Clason
Since 1920, this book has been teaching the wisdom for financial success through parable-like short stories set in ancient Babylon. The stories are so engaging that you鈥檒l forget that you鈥檙e learning about personal finance.
by Robert Kiyosaki
This book tells the tale of what Robert learned from two very different dads. His own dad was highly educated, but made poor decisions when it came to money, and the dad of a close friend who dropped out of school in eighth grade, but went on to become a multi-millionaire. Learning from the failures and successes of these two dads, Robert was able to retire at 47.
by Rick Edelman.
This is THE book about everything personal finance. But it鈥檚 not just numbers and calculations. It鈥檚 a roadmap with reasons to help you gain a better understanding of your money. The book starts with a quiz to show you how much you already know or don鈥檛 know about personal finance. This makes is easy to skip the chapters where 鈥榶ou got that鈥�, and focus your attention where you need the most help.
July: Review your insurance
Insurance gets a bad rap. It鈥檚 something we know we should have, but hate to pay for. Perhaps if we thought about insurance as income protection, we would appreciate its value more.
In a previous 草莓传媒 article, , I review three types of insurance you need to consider 鈥� life, long-term care and disability insurance. 聽The article has links to insurance calculators, handy online services and other tips to keep you and your income protected.
August: Track your spending
You鈥檝e heard me say this before 鈥� you need to know where your money is going if you want to achieve your financial goals. Online tools such as or make it so much easier now. The websites of these 鈥済iants of budgeting鈥� have a wealth of easy-to-use tips to help you set and reach your goals.
September: Max out your 401k
In 2015, you can defer up to $18,000 in an employer-based retirement plan, such as a 401k or 403B. If you鈥檙e over 50, you can defer an additional $6,000. Before your next pay period, find out how much you have contributed. There鈥檚 still time to increase your contributions over the next several paychecks before year-end.
October: Set up an Individual (k) if you鈥檙e self-employed
Many people in Washington have self-employment income.聽 Even many executives and employees have secondary income for which they receive a 1099.聽 Be sure you are utilizing all of your deductions and maximizing your retirement contributions.聽 The self-employed can often set up an Individual (k) that allows for greater contributions than an SEP.聽 Your CPA just completed the last of the corporate and personal tax returns and is waiting around for the year-end rush.聽 Schedule a meeting now, and you鈥檒l get his/her undivided attention.
November: Make an impact with your giving
‘Tis the season where you will be asked to donate by many organizations. Give back in a more focused way by deciding in advance how much you will give and which organizations will receive your generosity. Dan Pallotta is one of my favorite philanthropists, and I love the advice he gives in his 2013 TED Talk, . and are great online resources to find a charity that aligns with your values.
December: Maximize tax savings before year-end
The time to think about your 2015 taxes is before 2015 ends. After that, most tax planning opportunities are gone. Make sure you contact your accountant well before year-end especially if you had or will have a significant change in your income from this year to next. You can also go to for timely tax-planning tips.
Editor鈥檚 Note: Barry Glassman, CFP庐, founder and president of in McLean, Va., is a nationally recognized leader in investment and wealth management. His fee-only firm offers successful professionals, executives and business owners financial guidance and resources to effectively manage their family鈥檚 wealth. Follow Barry on Twitter at .
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