Business Insider - January 15, 2021
Here's what: It's a good time for some housekeeping
The first two weeks of 2021 have been chaotic. January is usually a time to set lofty goals and hit the ground running. For many, that typical new-year attitude is proving difficult to muster.
But I'm not writing off progress completely. In fact, I think it's the perfect time for some financial housekeeping. Here are five high-impact tasks you can do today in 10 minutes or less to help stave off stagnancy — and even build wealth.
Name beneficiaries. After years of thinking I'd named a beneficiary on my 401(k), I recently checked my online account to find it blank. Take a few minutes to ensure all your retirement or investment accounts have the right beneficiary listed (note that you'll need your beneficiary's Social Security number to make it official). This isn't fun to think about, but it's a small task that, if ignored, can cause more than a headache for your heirs.
Revisit auto-save (or set it up!). Automatic savings is a smart strategy because it doesn't require any ongoing effort. But don't forget to revisit the amount you're saving, especially if your income has gone up or your goals have changed.
Make a conscious spending plan. As I mentioned in a previous newsletter, the pandemic made my values very clear. Now, I won't spend money in ways that aren't aligned with those values. Write out your own values and use the list as a rubric to guide how you spend and save this year.
Check your credit report. It's easy to forget about your credit status in between big purchases. But checking your report for errors or fraud is free, and no one will do it for you. Through April, you can review a new report every week on AnnualCreditReport.com, which might be a good idea if you've paused debt payments or received any government relief during the pandemic.
Bump up your retirement contribution. You've heard this before, but it's good to be reminded. Even if you increase your deferral rate to an employer-sponsored account by a mere 1%, or add an extra $100 to your monthly IRA contribution, it makes a difference in the long run. This Business Insider article was legally licensed by AdvisorStream