With the end of one year and the beginning of the next, it’s natural that people think of resolutions for what they would like to improve. Most of these are based on the lack of commitment to a strategy or failure to plan, and inevitably, they end up with regret. How can we stop the cycle of indifference, procrastination, repetition, and remorse? Here are three common financial resolutions that, with a little dedication, can ease future regret:
1) “I will save more.” There are so many ways to save more, if you want. You can commit a portion (larger if you already do it) of each paycheck to savings, cut out mindless habitual spending, increase income through more work/projects, or redesign how you spend. The key is to understand why you should save more. The motivation could be to pay off or have less debt, to have more in retirement, to leave more to your children and grandchildren, or simply to have peace of mind. Be creative and enthusiastic.
2) “I will start an emergency fund.” There is no way around it: every emergency will be costly. If you don’t have the funds from one source, then they must come from another. Even just the growing uncertainty of not knowing how long you have until a crisis hits should be enough to motivate developing an emergency fund. It’s a better idea to have the fund without needing it instead of longing for one when you do need it. Time spent wishing is time wasted that is better spent planning.
3) “I will create/update my estate plan.” Putting your affairs in order is of utmost importance, not only for those who have had life-altering events, but for everyone. It may appear morbid to think about your business or your family future without you, but most people, after completing the planning, feel much better and have one less issue to worry about when facing the challenges in life. Inaction becomes the worst regret, especially when it’s too late.
Arlington Capital Management is not a legal or tax advisor. However, we will be glad to work with you, your accountant, tax advisor, and/or attorney to help you meet your financial goals.
We all look back and regret the things that we didn’t do. It’s much more rewarding to reap the benefits of change than to look back and wonder “what if”. Time marches forward, and we can’t go back, so let’s start the New Year off right by committing to new and better plans.
Did you know? If you examine your plans and find that you’re not where you would like to be, and you find that you are not receiving the right advice, counsel, ideas, or strategies, then you need much more in an advisor. Should you find that you are not getting enough support or the only service that you receive is lip service, you deserve better. You need a sounding board and a step-by-step planning process to assist you.