As the new year rolls out, there are many things we need to keep track of throughout the year that pertains to our personal finances. Many people take more time planning vacations than thinking about their personal finances, often procrastinating or flat out avoiding financial planning altogether. Personal financial planning ins an ongoing, lifelong process, not a one-time event. I’ve taken the time to list out tasks into more manageable steps month-by-month to make the process less overwhelming and lead to long-term benefits and success for you and your loved ones.
January:
- Manage debt by paying off high-cost credit cards.
- Establish an emergency fund (3-6 months of expenses).
- Create/update cash flow statement and net worth statement.
- Check and rebalance investment portfolio.
- Review workplace retirement plan contributions. If possible, try to contribute enough to take full advantage of any available employer match.
- For kids and grandkids looking to begin college or university in Fall of 2024, the window is open complete the Free Application for Federal Student Aid (FAFSA) for college financial aid.
- For independent contractors/business owners, file fourth quarter estimated income tax payment by January 16.
- Await annual tax forms (1099, 1098, W-2) by January 31.
February:
- Review insurance policies (property and casualty, liability, health, disability, life) for optimal coverage and cost.
- Check for corrected 1099 forms from mutual funds.
March:
- Strategically use annual bonus to pay down debt, contribute to your retirement plan, or build an emergency fund.
- Obtain free annual credit report from each reporting agency. CLICK HERE to learn more.
April:
- File income tax return by April 15.
- Contribute to a traditional or Roth IRA by April 15 for the previous fiscal year if not maxed out.
- For independent contractors/business owners, pay first-quarter estimated income tax by April 15.
May:
- Create/update inventory of home and personal property. Use phone to record a video of your valuable possessions, and then store video in a secure, remote location.
- Review/create estate plan.
June:
- Conduct mid-year financial review.
- Check year-to-date income and expenses.
- Assess retirement contributions and savings.
- The federal deadline to submit the 2024-2025 FAFSA form is June 30th, 2024. Some states and colleges have their own deadlines for financial aid, so check for updates at StudentAid.gov/fafsa-deadlines.
- For independent contractors/business owners, pay second-quarter estimated income tax by June 17.
July:
- Enhance money skills with personal finance or investing books.
- Compare summer vacation spending to annual cash flow plan.
- Consider establishing or contributing to education savings accounts.
August:
- Plan holiday budget.
- If applicable, consider contributing to a Coverdell Education Savings Account and/or 529 College Savings Plan for kids or grandkids.
September:
- For independent contractors/business owners, pay third-quarter estimated income tax by September 16.
- If you want to establish a SIMPLE IRA for your small business, due so by October 1.
October:
- File income tax return by October 15 if on extension.
- Open and fund individual/solo 401(k) or SEP IRA by tax filing deadline.
- As open enrollment season rolls around at work, take the time to review your health insurance coverage and other employer benefits
November:
- Budget responsibly for holiday gifts.
- Review charitable giving and consider tax-deductible gifts.
December:
- Consider tax-loss harvesting for investments to potentially lower your tax liability and better position your portfolio going forward.
- If 73 or older in 2024, don’t forget to take your annual required minimum distribution (RMD) from IRA or 401(k) by December 31st.
- Obtain annual Social Security Statement and verify earnings record.
For more information or need help executing your personal finance plan, CLICK HERE to schedule a strategic planning meeting!