Beyond a doctor or fitness trainer, your financial planner should be high on the list of those to hold you accountable to your goals. And so, right on schedule, here I am with a mid-year check in to remind you to stay on task and review what you’ve accomplished and where you might need to put in some work.
Did you know approximately 80% of people abandon their New Year's resolutions by February? If you're among them, don't worry—it's not too late to refocus and achieve your financial goals for the remainder of the year. As they say, what gets measured gets done! Here are some helpful suggestions to ensure a financially successful end to 2024.
Check in on your budget
At Kensington, we like to use the words spending plan in place of budget. The word budget can have a negative and constraining connotation, but a spending plan is meant to give you confidence in your spending, while at the same time helping you stay on track to reach your goals.
If you have strayed from your budget/spending plan, you’re not alone. But there’s still time to adjust your plan to meet your current needs and ensure you don’t fall short of your 2024 goals. You can start by examining your spending over the last six months and identify any areas that need attention. If this frees up some dollars, you can redirect the excess to your savings and investments.
Tackle any bad debt
The “bad” debt you want to make sure you’re paying down is your high-interest debt that could be draining your resources. Prioritize paying down this type of debt to ease financial stress.
Take inventory of your savings and emergency funds
The job market and economic climate that will unfold over the next year is uncertain. It is a crucial time to make sure you have more than enough reserved in your “life happens” account. We recommend having at least six months of expenses saved, but more could be helpful. This is also a good time to set an appointment with our team to review your retirement and investment accounts and make sure you are on track to meet your long-term goals.
Plan ahead for any tax burdens
We believe that tax planning is a year-long strategy but there are a few tax items to consider at this point in the year. First, take into consideration any major life changes you’ve had since last year. For example, have you switched jobs, gotten married, moved, sold a second home, received a large bonus, or have stock options vested? These life changes can all make an impact. Second, you’ll want to estimate your taxable income, if possible, including any required minimum distributions you’ll need to take if you’re retired. We can help you look at these numbers now and help you build strategies on how to minimize the taxes you’ll need to pay in the future.
If you have questions or would like to schedule a financial checkup appointment with our team, please contact us! It’s our goal to keep you financially fit throughout the year.
Paul A. Gydosh, Jr. CFP® is founder of Kensington Wealth Partners, Ltd., a premier financial planning organization centrally based in Columbus, Ohio with clients in 26 states and major cities including Chicago, New York, Boston, Washington D.C. and Miami. He is also co-author of “Master Your Financial Success: Retirement and Legacy Secrets from Planning Professionals.” Paul regularly addresses industry, academia and client organizations on topics of current economic, tax, and investment interest. As a leader and mentor in his field, Paul’s commitment to continuous improvement has enabled Kensington to serve the financial needs of some of the most successful individuals, families, and businesses over the last 36 years.
Securities offered through Osaic Wealth, Inc. member FINRA/SIPC. Osaic Wealth is separately owned and other entities and/or marketing names, products or services referenced here are independent of Osaic Wealth.