“It’s easy to ‘Monday morning quarterback’ and say, ‘I shouldn’t have done that,’” she notes. “But it’s wasted time.”
Instead, Ogden recommends trying to find lessons learned from past mistakes as well as taking solace in at least some of the positive financial developments this year. For instance, higher interest rates mean your savings will likely have gone up at least a little, she says. And many 401(k)s performed well.
Do the Boring Stuff Now
It’s a common frustration for people who finally decide to get their accounts in order ahead of the new year. They clear a few hours, grab a cup of coffee, and sit down ready to put together a financial plan, only to spend the whole time trying to find their retirement-account passwords or old tax documents.
Advisers say the often slow period between Christmas and New Year’s is a great time to set aside for the boring but important administrative tasks like downloading or updating financial apps, registering for accounts and getting referrals from friends and family for professional help.
“Just compile all the things you own and owe and where they are,” says Brittany Brinckerhoff, a financial adviser at Hilltop Wealth Advisors in Chapel Hill, North Carolina. “I would suggest doing that before you even start thinking about what you want to accomplish next year.”
Brinckerhoff also says late December can be a good time to take stock of subscriptions you haven’t used or that have raised their prices lately. She notes that some credit card companies and budgeting tools can help you find recurring charges and cancel those you no longer need.
For the Future, Think Small
Having big goals is all fine and well on the couch during vacation, but advisers say you’re more likely to stick with smaller, more tangible targets in the year ahead.
“Come up with a plan and break big goals down into smaller pieces,” says Carla Adams, founder of Ametrine Wealth in Lake Orion, Michigan. “Put reminders on your calendar, including a reminder mid-year to check in and see what you’ve accomplished thus far and what you need to do to get or stay on track.”
Adams also recommends people act fast if they want to improve their savings habits before the year begins in earnest. Those who were lucky enough to get pay raises or bonuses would be wise to stash them away early, she notes, so “it's out of sight, out of mind.”
This article was provided by Bloomberg News.