Resolutions and self-improvement vows are as much a part of celebrating the New Year as champagne and noise-makers. Now that the first week of 2021 is here, it is time to face a blank page and start listing our promises to ourselves in our New Year’s Resolutions. (Ew. Do we have to? Yes, most of us do.) Making New Year’s Resolutions is often an attempt at self-reform.
Financial Life Resolutions 2021: Achieving the Ultimate Challenge
On the one hand, Resolutions are often physical improvements like getting more exercise or losing 40 pounds. On the other hand, sometimes the resolutions refer to our business habits like acquiring better time management. Thus, we encourage you to look at another area of your life for your resolutions: Your Financial Life. You could make a few resolutions regarding your financial success and really begin a new life–at least a new financial life in 2021.
The Nature of Resolutions: A Quick Comment
Yes, if we are honest with ourselves, we often know the truth is that we will regress to our old habits in spite of our resolutions. Yes, we always seem to forget our good intentions after the first month of the year. However, our business and tax advisers want this year to be different for you and your business.
Thus, if your New Year’s Resolution involves re-shaping your financial awareness, we firmly resolve to help you maintain your vows. That’s right. We can help you set goals you can keep. And then, we’ll tell you more about that in our next blog. However, if you are curious, check out this online resource about a special “secret sauce.”
We’re pretty sure such resolutions can improve your life—at least financially. (We can’t really claim to help you lose those 40 pounds.)
2021 Resolutions: Actionable Goals for Personal Financial Growth
All that being said, 2021 could be the year you meet the challenge of actually honoring the resolutions you set—especially the resolutions you make regarding your financial life and success. And now, stay tuned to our blog to discover how to “act on the resolutions you have made in the first few weeks.”
Our executive accountants, tax, and business advisers do not want you to face another New Year with regrets that you did not accomplish the success you resolved to make. Thus we are sending some top financial resolutions for changing your life in the New Year, and an accompanying challenge.
Introducing Three Life-Changing Resolutions You Can Do By Feb. 14th
This blog includes three financial resolutions. We are challenging you by setting the Finish Line for Valentine’s Day. In other words, pick one of the following 3 resolutions and accomplish it, not in some distant time in the next 365 days, but by Valentine’s Day.
And if you are an over-achiever, pick all three. Then make serious resolutions to accomplish them within the next few weeks, with Valentine’s Day as your ending goal. And by the way, on the way to accomplishing these resolutions, if you are comingling your spending with a mixing up of businesses and personal money, just quit. Cold Turkey.
Of course, the big challenge is that time frame, with your deadline painted in red hearts. We picked Valentine’s Day as your challenge date because you will love the sense of accomplishment these resolutions will bring you.
Resolution Number One:
Resolved, I will hereby increase my “monthly 401(k) deposits…” Why? “This will automate your savings while giving you a tax break.” And the best part of this resolution is very subtle. You see, you won’t miss money deducted automatically from your paycheck. Yet it builds you a nice nest-egg for the future.
“By the way, if you are self-employed and don’t yet have a retirement plan, don’t let January end without setting one up.”
New Year’s Resolution Number Two: An Easy One!
Resolved, I will adjust my payroll tax withholding. This is a great time to adjust your payroll tax withholding. Did you get a big refund? Did you have a Big Income Tax bill? Then you know it’s time to tune up your payroll deductions. You want the amount of taxes withheld to be closer to the amount you actually owe.
New Year’s Resolution Number Three: New Reading Material
If you do not like to read, then buy an audible book, but buy a book on basic personal finances. This is especially true for medical practitioners.
You might try Starting Your Practice Right – Financial Success MD or you might begin with The White Coat Investor.
Additionally, you could go with a more generalized classic like, “Why Smart People Make Big Money Mistakes and How to Correct Them,” Gary Belsky & Thomas Gilovich (1999). Check out more suggestions at this online resource. The 5 Personal Finance Books You Should Be Reading In 2021 (forbes.com)
What we are saying is that there are a lot of great books on the topic of personal finance. And any one of them could enrich your financial life immensely. Start reading as little or as much as you can daily. However, the challenge is to completely finish your book in time for your Valentine’s Day dinner date.
Need More? Look Ahead
Three New Year’s Resolutions might not be enough for some of you. However, fear not, we will include a few more in our next blog. Plus, we will divulge a little bit of a secret for helping you stick to them.
Happy 2021. We hope you enjoyed your first week. Let’s make 2021 the year you improve your fiscal health and begin a true journey to success.