The new year is the perfect time to focus on strategies that help you manage your finances effectively, especially for transitional periods.
Securing your next gig is an exciting experience. And while working on a new set or with a new client is something to look forward to, knowing that your income may be intermittent can sometimes make budgeting complex. You need to have an adequate amount of money to cover costs during your current job as well as the potential gap before your next one. Having a sufficient financial buffer to navigate interim periods between jobs is important should an unexpected expense arise. The new year is the ideal time to establish and review financial goals and expand on the budgeting progress you made last year.
Build on last year’s budget.
Did you spend less in certain categories, like food delivery or leisurely purchases, last year? Advance these items from the previous year’s budget and include them this year to boost your savings. The money you set aside now can be used for essential equipment, home improvements, or to treat yourself later. Remember, maintaining a budget isn’t about denying yourself pleasure, but to keep you on track and allow yourself the pleasure to indulge responsibly.
Keep money in your pocket.
Credit cards, while tempting to use them regularly for personal purchases, should be saved for unexpected large expenses. If any of your cards still carry a balance, make it a personal goal to pay your balance in full on time, every time. For many lenders, interest accumulates over the course of the month. Don’t pay for any charges if you don’t have to.
Getting everything squared away.
Reassessing your beneficiaries is worthwhile, and what better time than the beginning of a new year. Many times, updating beneficiaries and their corresponding information can be accomplished online and with minimal effort.
Take the next step.
Consider when you last updated your will, trusts, or legal properties. Taking care of these essential estate planning documents can provide peace of mind. Reviewing them may require time and some expense, including consulting with an estate planning attorney if your circumstances are complex, but will be well worth it should anything unexpected happen.
Plan for the future.
The best financial planning considers your future goals. If you anticipate any upcoming large expenses such as tuition needs, vacation plans, or equipment and gear purchases, make sure your financial plan reflects them. Meet with a financial advisor so together you can make this year the most successful one yet. Contact our office today to schedule a time to review your financial plan.
Michelle Lee, Financial Advisor
323.845.4434
mlee@firstent.org
www.firstent.org
