Although no one can go back
and make a brand new start,
any one can start from now
and make a brand new
I have given up on New Year resolutions about my weight and my physical condition. Being a retired old fart, my financial health has become a bigger priority. I don’t want to out live my money so now I make financial resolutions instead.
Every year make a net worth statement, I list all my assets and subtract all my liabilities (debts) which leaves my net worth. I then compare it to last year’s, am I richer or poorer? Keeping financial score is important to gauge your financial health. Even if you have no assets, listing your total debts can be an incentive to eliminate them.
Resolution # 2
I make a one year financial plan. I make a list of things that we may need like a house repair or a major purchase. I also make a wish list like taking a winter vacation or buying new golf clubs. I am happy that eliminating debt is no longer needed in my plan.
Resolution # 3
I make a budget, but first I check last years budget, was I on track, were there any categories that were over budget. Anything new to include in this year’s budget. (weddings, babies or medical bills) Now I am ready to include items from my financial plan into my budget. Can I make enough income from my retirement nest egg to cover my new budget?
Resolution # 4
I schedule to review my plan every three months to check our progress and make any necessary adjustments to our short-term goals. (like reduce some of our entertainment budget)
Resolution # 5
Improve my financial knowledge by spending more time reading financial books, financial blogs, on-line newspapers and on-line videos. The day that I think that I know it all is the day that I get into financial trouble. I could find a money-saving tip or an investment idea that I haven’t thought of.
I now have a plan to make a much better ending of 2015 , if I succeed I will have a little extra something to celebrate!!!