It is important for everyone to reset their 澳洲幸运5官方开奖结果体彩网:personal finances and their goals for the New Year. Factors that impact your finances could have chan♏ged significantly over the previous year, so it's always a good idea to regularly review your goals.

Did you make any resolutions concerning your personal finances last January? If so, how did you do? Did you attain your goals or miss the mark? While the days leading up to New Year's Eve are often spent reflecting on the year gone by, the following days should be spent reflecting on the New Year, reviewing your financial scorecard for the past year, and then looking for ways to improve.

The good news about New Year's resolutions is that you get a fresh crack at them each year. Here are some financial moves that you should resolve to make in the year to come.

Calculate Your Net Worth

If you haven't already done so, the start of the new year is an opportune time to determine how much you're worth financially. Calculating your 澳洲幸运5官方开奖结果体彩网:net worth is a key step i♛n assessing 🍃your financial health and reaching your financial goals.

The resolutions that you need to make will become more obvious after doing this calculation. Looking closely at all your assets and 澳洲幸运5官方开奖结果体彩网:liabilities helps to create a clear picture of where you are prioritizing your current spend🎃ing and saving and where you may need to make changes in those habits.

Reset Your Retirement Accounts

If you have the opportunity to save for retirement through a 401(k), 403(b), or 457 plan sponsored by your employer, consider budgeting a set amount each month for your account. And if you can afford to, consider contributing to an 澳洲幸运5官方开奖结果体彩网:individual ♈retirement account (IRA), as well.

Employer Plans

If you have access to a 401(k), 403(b), or 457 plan at work, your goal should be to contribute as much as you can reasonably afford, up to the allowable maximums for the year. Note that if you'll be age 50 or older by next Dec. 31, you can make additional 澳洲幸运5官方开奖结果体彩网:catch-up contributions on top of the regular limits.

Financial experts typically suggest contributing at least enough to your employer's plan to earn any 澳洲幸运5官方开奖结果体彩网:matching contribution your employer may offer.

Are you self-employed? If so, depending on your income, you can contribute to a SEP IRA, 澳洲幸运5官方开奖结果体彩网:profit-sharing plan, or 澳洲幸运5官方开奖结果体彩网:independent 401(k) plan. And if you'll be age 50 or older by Dec. 31, then the contribution limit jumps for independent 401(k)s, helping you save even more.

IRAs

Even if you're covered under a retirement plan at work, you and your spouse can each contribute to a 澳洲幸运5官方开奖结果体彩网:traditional IRA or Roth IRA, as long as your combined taxable wages and net self-employment income are not less than the꧒ total amount contributed. Anyone age 50 or older can contribute an extra $1,000, increasing the total allowable contribution to $8,000, or $666 per month. These limits apply to tax years 2024 and 2025.

Keep in mind, however, that for the 2025 tax year, a 澳洲幸꧋运5官方🅷开奖结果体彩网:modified adjusted gross income (MAGI) of $150,000 to $165,000 for single filers (up from $146,000 to $161,000 in 2024), or $236,000 to $246,000 for married couples filing jointly (up from $230,000 to $240,000 in 2024), puts you in the 澳洲幸运5官方开奖结果体彩网:phase-out range for being able to contribute to a Roth IRA. There can also be limits on how much of your traditional IRA contributions you are allowed to deduct, based on your income and whether you are covered by a retirement plan at work.

Update Your Savings Goals

Creating easy access to your funds can be tempting. You do run the risk that, if you are like many people, you will spend money that you can get to easily. To help you reach your goals, be sure to transfer amounts earmarked for savings from your checking account to a designated s💯eparate savings or investment account. Better yet, have a set amount from your paycheck auto-deposited into savings. That will make it more cumbersome to spend the money that you have managed to set aside.

Make a Plan to Pay Down Debts

Take a few minutes now to set new savings goals for the New Year, including how much you would like to add to your retirement nest egg and/or your children's education fund or put toward the down payment on a new home. You should also reset how much you plan to pay on your personal loans, debts, and home mortgage accounts.

Consider paying some extra principal toward your mortgage payment each month. By doing so, you'll earn a 澳洲幸运5官方开奖结果体彩网:risk-free return on that money equal to your♋ mortgage interest rate and cut down on the number of years that it will take to pay off your mortgage. However, if you must choose between adding to your retirement accounts and paying extra on your mortgage, you might want to consult a financial advisor to determine which option ༺is more suitable for you.

Rebalance Your Portfolio

The stock market always has its ups and downs. Some sectors overperform, and some sectors underperform. Chances are that the sectors that did the best last year may not enjoy a repeat performance this year. By 澳洲幸运5官方开奖结果体彩网:rebalancing your portfolio to its original or updated asset allocation, you take steps to lock in gains from the sectors with the best returns and purchase shar👍es in the sectors that have lagged behind last year's leaders.

Pay Down Your Credit Cards

If you 澳洲幸运5官方开奖结果体彩网:owe money on your credit cards, determine how much you can realistically afford to pay off during the year. For best results, try not to charge additional purchases on those cards while you're paying down what you owe. If you have high-interest credit card balances, consider whether it would be more beneficial to pay off those high-interest debts or add to your savings. Another option to consider is 澳洲幸运5官方开奖结果体彩网:transferring your credit caౠrd balance to a new♔ card with a lower interest rate or even a 0% promotional rate.

Review Your Credit Report

Make sure that you check your 澳洲幸运5官方开奖结果体彩网:credit report regularly, and take steps to repair any ne𒁃gative aspects. Now that you're entitled to three free credit reports each year, there is no excuse for not reviewing this important document, especially since errors are not uncommon. The official website for requesting your free credit reports is AnnualCreditReport.com.

Rev💧iew Life Insurance and Disability Insurance Need🍰s 

As you move through your career, your life insurance and disability insurance needs will continue to change. Give some༒ thought as to how much prote﷽ction you need, and compare it to the coverage that you may already have through your employer's benefits package.

Consider whether 澳洲幸运5官方开奖结果体彩网:you need more or✅ lessꦅ life insurance and whether your needs would be better satisfied by term or 澳洲幸运5官方开奖结果体彩网:permanent life insurance. Also, review your disability insurance cover🌸age to determine whether the amount y♈ou have is adequate.

The Bottom Line

Take this opportunity to restate your financial resolutions simply and clearly for the New Year. Be cautious about se✃tting too many or unrealistic financial goals. Otherwise, you may 𒈔be unable to accomplish any of them.

It may be a good idea to ma♐intain a checklist to keep track of how you are doing throughout the year so that you can make any necessary modifications. If you have a financial advisor, consider meeting with them to review the goals that you have set for yourself.