Own Your Financial Future: 5 Steps You Should Take in the New Year

How are YOU feeling about your money goals?

Maybe you’re not even quite sure what they are, or what they should be to achieve the kind of lifestyle you want?

Well sister, we’ve got you. Check out 5 steps you should take in the new year to own your financial future!

Set and check in with your money goals and what you want for your financial future.

You should review your money goals on a regular basis to ensure that you are staying on track and making progress. Setting short-term, mid-term, and long-term financial goals can help you keep track of your savings efforts and plan for the future. Short-term goals might include boosting your emergency fund or saving up for a purchase.

Whatever your goals are, you need to make an action plan to meet them. That’s why working with a money coach can be so beneficial! We can help you identify money goals that work for you and help you develop a plan to meet – and yes, even exceed – your goals so you can live the life you want.

Make sure you’re adequately prepared for tax time.

It is important to realize that any income you earn, whether through side hustles, small businesses, or investment opportunities, will be subject to taxation. That is why it is important to make sure that you are setting aside money for taxes if you are earning realized income from these sources.

Preparing ahead of time for tax season is key to avoiding unnecessary stress and financial obligations. To begin preparing, it’s important to understand your current income and how much you may owe in taxes. Having a good understanding of this can help you plan for funds that need to be set aside for taxes.

Creating a bank account dedicated to taxes is a great way to prepare for tax season and ensure that you will have the funds available to meet your obligations. Setting up this account early can give you peace of mind, knowing that you are taking action to manage your taxes in the best possible way and setting up your financial future for success – and no surprises!

Start – or boost – your emergency fund.

Prepare for the unexpected and safeguard your financial future by building a substantial emergency fund. Getting started on an emergency fund can seem intimidating and overwhelming at first. The good news is that you don’t have to save up your entire goal amount right away! Start off by setting a more manageable goal of $1,000 and work your way up from there.

We recommend setting aside 3-6 months of living expenses in an emergency fund in order to be prepared for unexpected situations or events. This is especially important for individuals with variable incomes or those that are financially independent.

To begin building your emergency fund, it is important to track your monthly spending to understand where your money is being allocated and evaluate which expenses can be reduced or eliminated in order to free up more funds. An effective way to do this is to create a spreadsheet tracking all of your monthly income and outgoings.

Additionally, you should consider automatically transferring funds from a checking account to an emergency fund account on a regular basis. This is a simple way to ensure that you are setting aside money for emergencies with minimal effort. Start by determining how much you need to set aside each month and create an automatic transfer of that amount into your emergency fund account.

Contribute to your retirement accounts.

Saving for retirement early is one of the most important steps you can take to protect your financial future. The earlier you start, the more time your money has to grow and compound so that it can have a greater impact on improving your lifestyle in later years.

Creating a retirement savings plan is an excellent way to ensure that you will be able to enjoy the financial rewards of your hard work in later life. By thinking ahead and planning ahead, you can ensure that you have funds saved up for the future when you need them most.

When creating your retirement plan, it’s important to do thorough research and speak with professionals who can help you craft a sound strategy that works for your individual needs. It’s essential to understand the tax implications of retirement accounts and which type of account may be best for you.

It is essential to understand the types of retirement accounts that are available and which type may be best for you. There are a variety of retirement accounts, including traditional Individual Retirement Accounts (IRAs), Roth IRAs, SEP IRAs, SIMPLE IRAs, and 401(k)s. Knowing the difference between each of these accounts, and learning which one(s) best fit your money goals, are key to successfully saving for retirement. You can work with us at our sister company, Wilcox Financial, on your retirement goals!

Increase your income.

There are many ways to increase your income quickly. One of the best ways to increase your income quickly is to ask for a raise. If you have been doing exemplary work and meeting expectations, you may be due for an increase in salary. Speak with your supervisor or manager about your performance and make sure they are aware of the value that you bring to the company.

If you are looking to ask your current employer for a raise, it is important to make sure that you have done thorough research on the subject, know what kind of salary increase is reasonable for your job, and have tangible evidence to support your request.

You can also start a side hustle to make extra money. Starting a side hustle can be a great way to increase your income and provide you with the financial security and freedom that you are looking for. A side hustle is any type of business, activity, or job that you undertake in addition to your regular full-time job.

Before committing to anything, it is important to consider the financial implications of taking on an additional job or activity. This includes whether you will be able to manage the extra workload, how much additional income you can expect to make, and any associated costs such as transportation or additional equipment that may be required.

Need help reaching your money goals?

We’ve got you! Set up a Money Coaching discovery call today to get on the right path to owning your financial future. And if you’re looking for more in-depth financial planning services, check out our sister company, Wilcox Financial.