After what felt like one of the longest years ever, 2021 is finally here. There’s no denying that 2020 was a challenge. While there’s still a lot of uncertainty as we enter the new year, there are things you can do to help ensure your financial stability. If you’re wondering how to start the year financially strong, here are seven things you can do.
1. Meet with Your Advisor
One of the first things to do to start the year off right is to contact your financial advisor and schedule an appointment. If your advisor isn’t meeting clients in person (or you’re not comfortable with an in-person meeting), find out if they’ll talk with you over the phone or schedule a videoconference.
2. Evaluate Your Goals for the Year
Take a look at the year ahead. What do you want to do or accomplish in the next 12 months? Look at your financial and personal goals to make sure that they align with one another. Sit down with your partner and have this discussion together so that you’re both on the same page. A united front will help set you up for financial success.
3. Reflect on Last Year
Along with looking ahead, don’t forget to look at last year. Reflect on the positives and examine what went right. Focusing on the positives can help you to see what steps you can take again this year. At the same time, don’t forget to consider what might have gone wrong or what could have gone better. These situations will help you understand what to avoid in the new year.
4. Think Through Large Purchases and Investments
Before you make any large purchases or investments this year, think through them. Be sure that they make sense and align with your goals. One of the last things that you want to do is make a hasty decision that derails your financial success for the rest of the year (and into the years to come).
5. Diversify Your Portfolio
Take some time to assess your investment portfolio. You want to make sure that you don’t have all of your money in one account or investment type. A diversified portfolio can help to increase your return while reducing your risk. A good financial advisor can help.
6. Make Yourself a Priority
Make yourself a priority. Focus on your mental and physical health and well-being. Believe it or not, this can have an impact on your financial success. Poor health and outlooks can create negative habits, including spending habits. When you’re healthy and feeling good, you’re more likely to make better decisions that help keep you on track for financial success.
7. If Necessary, Find a New Financial Advisor
Evaluate your relationship with your current financial advisor. If you’re not comfortable with them, it’s time to find a new one. A great advisor is one who takes the time to get to know you so that they can help achieve your goals. Interview a few potential advisors to find out more about them and what they offer. No matter who you choose, make sure that you feel completely comfortable with them.
Start the Year Off on the Right Foot
The start of the year brings a new opportunity to set yourself up for financial success. Assessing your goals, diversifying your portfolio, and taking care of yourself are all vital steps. A great financial advisor can help too. The sooner you get started, the sooner you can start achieving your goals.