As we enter the holiday season, reflect on the year, and set goals for 2023 we thought it would be fun for our team to share the Wealth Dimensions 12 financial tips of Christmas.
12 Financial Tips for the Holidays
Tip #1: Grocery delivery service. Time is money, and it’s proven that if you have a list at the grocery store and you buy what is on the list only, you will save money over time. This takes it one step further. You don’t have to drive to, or from, the grocery store. So you’re saving money on gas as well.
Tip #2: Stay consistent in your investment strategy. Volatility in the markets can cause panic and make you want to make dramatic moves. However, our experience shows, historically, that staying the course is the best strategy over the long run.
Tip #3: Your crazy uncle may have the best of intentions with his hot stock picks. It’s important to educate yourself and seek advice from a qualified financial advisor.
Tip #4: Pay yourself first. Set aside a percentage of your paycheck for savings where you prioritize maxing out retirement plans, and other tax-efficient savings vehicles.
Tip #5: Review your insurance policies to ensure you have proper coverage and it still fits your needs.
Tip #6: Check your auto renewals. Between Netflix, Geek Squad, different music streaming subscriptions. Do you need to have Spotify, as well as Apple? Gym memberships? Your kids’ auto renewals? When was the last time they played Fortnite? But you’re still paying for that monthly subscription. It adds up, so check ’em.
Tip #7: Avoid lifestyle creep. This is around the time for job reviews, where raises and bonuses are paid out. It can be tempting to buy that new car, or focus on short term expenses, but you should commit to saving for your long term goals to provide you options in the future.
Tip #8: The end of the year is a great time to review how you spent and saved your money throughout the year, and set goals for the coming year.
Tip #9: Pay off all bad debt. You are losing money on high-interest payments. Prioritize paying off credit card bills and other high interest accounts.
Tip #10: Fund your kids’ 529 plan, and remind relatives that they can do the same. Take advantage of tax savings opportunities for your kids’ education, and depending on the state, a current year deduction for you. It is also a great alternative to accumulating more toys from grandparents, aunts and uncles, and provides them an opportunity to positively impact your child’s future.
Tip #11: Just because you can buy in bulk, doesn’t always make it cheaper. Are you going to use that 20-pound bag of mangoes, or is half of it going to spoil and end up in the trash? At times, with non-perishables, it can make sense. But with fresh goods, sticking to your local grocery might be a better idea.
Tip #12: Review your estate plan and beneficiary designations to verify they still align with your wishes and ensure that people listed are still able to serve their roles.
Start Your New Year Right
Stop waiting on a financial plan. We help clients tackle many of the tips mentioned and plan for their future. Time is your most valuable commodity, so contact us today to start the new year off right.
For informational purposes only. Not intended as investment advice or a recommendation of any particular security or strategy. Past performance is not indicative of future results. Information prepared from third-party sources is believed to be reliable though its accuracy is not guaranteed. Opinions expressed in this commentary reflect subjective judgments of the author based on conditions at the time of writing and are subject to change without notice. For more information about Wealth Dimensions, including our Form ADV Part 2A Brochure, please visit https://adviserinfo.sec.gov or contact us at 513-554-6000. Please be advised that this material is not intended as legal or tax advice. Accordingly, any tax information provided in this material is not intended and cannot be used by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer.