Personal Finances are key to many New Year’s Resolutions. We considered titling this blog article “3 More Actionable Ideas for Your First Month–New Year’s Resolutions.” However, we decided on the above title because:
- This blog’s 3 main points for this, our second blog the first week of 2021 are much too important to be considered trivial wishes on such a list.
- And, in fact, the idea of improving your personal finances is usually over-looked when people make such lists.
How to Begin: Improving Your Concept of Personal Finance
We do, however, highly recommend you read or review our previous article with its financial success suggestions for fiscal health to begin 2021. However, keep in mind, we believe you should be accountable and accomplish these actionable, goal-orienting items near or by Feb. 14th.
Nevertheless, the following items for starting your personal, financial 2021 year of fiscal growth could bring your life healthy improvements. But we recognize they might take you just a little longer than Valentine’s Day to accomplish. Our point is that you should set a date for completing these actionable items.
(Chances are, these are financial items you promised yourself to accomplish years ago. We know. Life got in the way. This is your year to make them happen, especially if you are or will be a doctor or other entrepreneurial professional.)
We are extending your date, partly because these three healthy benefits for your fiscal life might rely on a few other intensely busy partners in your financial life. However, remember that these three healthy financial actions or habits do not stop when you first accomplish them. They bear fruit over the year and often monthly. (So we need to get them done and “done right,” immediately.)
Personal Finances: Actionable Item Number One–Refinance Your Loans?
If within the last few years, you have purchased a home, we bet you have noticed interest rates have dropped. So, what are you waiting for? We doubt they will ever drop lower. So “refinance the loan and save on interest.” As the experts say, “You will only need to do this paperwork once.” Then, “you will reap the benefits from the savings for the life of the loan.”
A Quick Side-Trip for Extra Knowledge—Estimate your Net Worth: It’s Worth Knowing Where You’re Going
This actionable item is brought to you by the idea of Net Worth. If you are getting excited by how you can control your wealth and taxes, you will love the information available on your net worth. Figure it out with the Financial Samurai, who “slices through” the complex definitions in an easily-read article on Net Worth Allocation.
With that short article, you can get an idea of where your fiscal health score would be today. This will reveal your net worth in comparison with others in your field. You will be armed with a saber-full of information.
And, Doctor, if you do not HAVE a home yet, the Financial Samurai will tell you how to compensate within your net worth, for the advantage or disadvantage of your home-ownership situation.
You and Your HSA: Actionable Item Number 2 for Healthy Personal Finances
In the first place, we are assuming you probably have a high deductible medical insurance plan. Then, we believe you will qualify for a HAS, which stands for Health Savings Account. —That’s the HSA. You might not have the money just laying around at the moment. However, let’s make a plan to improve this area of your personal finances.
- The maximum contribution allowed for your Health Savings Account in 2021: That means $3,600 if you’re single and $7,200 for the family time.
- Why should you create a Health Savings Account? It is like a retirement plan. You will get a tax write off now when you put money into the account. According to the experts, “it grows tax-free, and when you spend it later, on healthcare, there is no tax owed.” Improving your personal finances is all about improving your future, not just your present.
- With your Health Savings Account, the personal finances secret is: “…Contribute to the fund this year, but don’t spend any of it until you have retired.” Yes, we realize that might be 20-30 years away. But, just think of the nest-egg you will have. If you are intrigued, check out this excellent online resource from the famous experts at Kiplinger.
Personal Finances and the Most Dreaded Actionable Item Number 3: Your Will
No matter how old you are, we imagine you are still putting off either making or updating your will. This is such an easily ignored item of personal finances, yet it is critical in many financial situations.
Like many of today’s financial pundits, we believe that you should make or update your last will and testament today or at least by the end of this month.
Updating Your Will: basic financial responsibility.
There are two big reasons to accomplish it now:
1. If you have not updated your will in 5 years, it’s time to review and make necessary changes.
2. Likewise, what if you have added another child within the last 5 years? You do not want to leave him or her out of your estate, large or small, accidentally.
Who is your Financial Coach?
You might question if number 3 is the purview of your accounting, tax, or business planner. We are prepared to be your wealth advisor, business planner, investment strategist, CPA, tax planner, and motivational coach for your best financial life. Better personal finances habits alone can’t totally make your life run. But let’s do it right in 2021.
Given the current pandemic situation with COVID-19, it has never been more important to control your finances. Accomplish your actionable items with a good personal finances coach. Our executive business planners are confident. Discover your improved fiscal health with their assistance.
And remember. The habits of good personal finances grow good professional business habits. No one ever probably tells you that except perhaps, your mother. But it’s true. We’re here to help. We are determined to coach you into a Championship Season—financially.