Thursday, January 4, 2018
Taking 2018 Month by Month – A Guide to Prosperity (PART 2)
Yesterday we started a month by month timeline of tasks to focus on each month of 2018. Today we will continue on for the last half of the year starting in July. Let’s get this year’s financial goals in order!
July: Get Insurance
Everyone needs insurance. No seriously, everyone needs it. The question is: What kinds of insurance do you need? Life Insurance protects the ones you love from the loss of you. Disability Insurance protects your paycheque in case you can’t work. Health Insurance protects your wallet from the rising costs of healthcare. The list goes on and on so find out what is most important in your life and protect it. Insurance is the transferring of risk. Instead of paying upfront for something, so pay a small premium and put the risk on the insurance company. If you are tired of paying large amounts of money out of your pocket for life’s problems, insurance is one of the answers. Is it not the most fun part of your financial plan; not even close. It might just be the most important though.
5 Most Common Mistakes People Make with Life Insurance – Huffington Post
August: Understand Your Investment Portfolio
Much of the investment industry thrives on consumer ignorance. Just like I mentioned in taxes, you should have a basic understanding of how your investments should perform and the risks associated with them. Do you know what you are invested in? Do you know where these investments are held? Do you know the fund performance and how it relates to your goals and dreams? A simple 30-minute conversation with your advisor should be able to clear the air about your investments. Make sure you have a basic understanding of what your money is doing to make your life better.
September: Make More Money
You have worked your butt off for 8 months of the year by now and do you have anything to show for it? It is a simple truth that making more money will make your life better. Add in spending less and saving more and you will be very wealthy indeed. If you haven’t received a raise in a long time, find out why. There is no excuse for you not to get regular raises if you are performing your job well. Inflation kills roughly 2% of your purchasing power every year. If you have not received a raise in 5 years than you make 10% less than you used to make. That means that you don’t make 50K, you make 45K. You have to make more money every year just to get by and get ahead. If it means picking up more shifts or doing some extra work on the side, so be it. No one ever got rich working 9 to 5, truth.
The Most Important Money Habit You Can Ever Develop – Budget Boss
October: Think about Death
But I am never going to die. I’m going to break it to you amazing people out there: All of you will be dead one day. It’s sad, it’s scary and no one wants to talk about it, but death is inevitable. It is the people who understand this and make preparations for it that come out on top, or at least their loved ones do. Far too many people neglect estate planning and leave it up to their family. Do you have a will? Do you have a Power of Attorney? Do you have Life Insurance and a trustee set up to distribute funds to minor children? Do you know the tax man will get you even when you are dead? Talk to someone about your estate plan and get the wheels in motion to make sure your wishes are fulfilled even when you are gone.
Estate Planning Checklist – Cindy David Financial
November: Make a Holiday Vow
If you remember a few months ago, the Christmas season was already in full swing by the time November rolled around. Are you going to spend way more than expected again this year? I have personally made a vow to not overdo it on Christmas, ever. I won’t get into my deep-seated hatred of the holiday itself, but I will tell you that I think blowing money on a holiday is foolish. If you feel it is necessary then make sure you plan for it instead of racking up debt. Vow off Christmas, or vow to be prepared for it. If you do neither then you deserve your February credit card hangover.
December: Reflect on the Year Gone By
The end of the year is a great time to reflect on all the progress you have made, and realize the mistakes that might have held you back. Take this time to recap the resolutions that you didn’t accomplish and be happy about the ones that you did. Did you add to your debt this year, or eliminate it? Did your savings and investment accounts grow? Did you take the ever-important step of securing your families future by getting insurance? Never get down on yourself, but always admit mistakes and take the steps to correct them. Life’s a journey and the biggest battle is always from within.
If you compartmentalize every month of the year and assign a different task, it will make your journey to financial freedom that much easier. Rome was not built in a day and you will not become rich overnight. It takes hard work, dedication, patience, and persistence. Always be improving and you will see that the sky is the limit.
Thank you for tuning in today as we continue on with our 2018 Kickoff Week here at Budget Boss. Don’t forget to tune in tomorrow when we show you what to watch out for this year when it comes to your finances. If you would like to set up your 2018 financial plan, shoot me a message at joe@budgetboss.ca and let’s get started. Have a great day Bosses!
“Be at war with your vices, at peace with your neighbors, and let every new year find you a better man.” – Benjamin Franklin
Email – joe@budgetboss.ca
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