Six Alternative Financial Goals to Consider (Beyond the Well-known Ones)
Six Alternative Financial Goals to Consider (Beyond the Well-known Ones)
It's about that time of year when we all look forward to a fresh start, a new year, and the opportunity to finally get our financial house in order. For many of us, this means making some serious, foolproof New Year's Financial Goals. While the traditional financial resolutions, like creating a budget, saving more, and paying off debt, are all good ideas, there are also some lesser-known financial goals that you might not have considered.
These lesser-known financial goals may not be the first things that come to mind, but each one can have a significant impact on your financial health. So when you're revising your financial goals this year, consider adding some of these to your list for the greatest impact.
Taking Care of Your Property
If you own property and don't have a thorough maintenance plan, you're setting yourself up for financial headaches in the form of large future expenses. Neglected home maintenance has a measurable cost, and dealing with maintenance and repair issues incrementally is a lot easier than dealing with annual emergencies like a roof replacement or replacing rotten siding, both of which can cost tens of thousands of dollars. Committing to maintaining your property properly will have a positive impact on your finances.
Evaluating Your Subscriptions
It's so easy to sign up for services and then forget about them, only to realize later that those forgotten subscriptions are costing you a significant amount of money. So make a resolution to evaluate those subscriptions and be mindful of which ones are still beneficial and which ones can be canceled. There are tools available to help you review those expenses, but the key is to make the resolution to begin with. This resolution could also help other financial goals by freeing up money that could be used to build an emergency fund, pay down debt, or increase savings.
Reviewing Your Insurance Coverage
A lot of us buy insurance when we have to and then forget about it, paying the premiums without giving it much thought until we need to make a claim. But you should make a resolution to review all of your insurance coverage this year—check to see if you could be paying lower premiums (either by switching insurers or updating information on your CLUE report), and that you have the appropriate amount of coverage for every aspect of your life (consulting with an insurance professional can help if you're unsure of the appropriate coverage levels). You should also check that your beneficiaries are up-to-date and that you're not paying for riders or additional insurance that you no longer need.
Dealing with Inflation
These days, we're all painfully aware of inflation and its impact on our lives. And yet we tend to view it as a force beyond our control. This year, make a resolution to take inflation into account—increase your savings and earnings goals by an inflation-adjusted amount. Keeping track of the inflation rate gives you a clue as to how much more expensive things will be (or how much less your money will buy) so you can prioritize needs versus wants. This is critical information that you can use to inform your decision-making instead of being caught off guard by a sudden explosion of your grocery budget.
Understanding the Value of Your Time
Here's a resolution for you: Recognize the value of your time. Literally. When you go to work, you're selling your time, not just your skills or experience. Your skills or experience add value to your time, but time is what you're ultimately selling. That means your time has an hourly rate attached to it, whether you realize it or not. Take a moment to figure out what that rate is (if you're not paid by the hour, start with your annual salary and divide by 2,080 to get a very rough idea).
Now you can think about every single thing you do in terms of the cost of your time relative to the rest of your life. If you normally earn $25 an hour to do work, that number will help you determine whether you're using your time wisely, or if someone is taking advantage of you. Feel free to give yourself a raise if you're pretty sure you're underpaid at your job—but also make a resolution to find a new job if that's the case.
Cleaning Up Old Assets
This year, make a resolution to do a thorough check for assets you may have forgotten. Checking for unclaimed property doesn't take long, and it might remind you of an old account that you've forgotten. And if you have a bunch of old 401(k) accounts left behind at old jobs, make a resolution to clean up that mess this year.
Even if the amounts in those accounts are small, it's worth it to claim them and roll them over for several reasons: Combined, the money might be more than you realize, and leaving those accounts under the control of an employer you're no longer with isn't a recipe for financial success. Plus, you're leaving money on the table. In a time when 28% of the country has zero saved for retirement, every penny of that money could be crucial.
Including 'best overlooked financial resolutions' and 'money', here are two sentences that can follow from the given text:
The best overlooked financial resolution pertaining to money is regularly evaluating and cutting back on unnecessary subscriptions, which can lead to significant savings. Another underappreciated financial resolution related to money is reviewing insurance coverage to ensure premiums are optimal and coverage levels are adequate, potentially saving you thousands in the long run.