It’s January 3rd. How are those resolutions holding up?   If your like most people, they are already teetering on the edge.  Before you fall off completely, read these 25 Financial Tidbits to see how you can put yourself in a better financial position in 2018!

25 Tips

1. People often have twice the credit they actually need. Avoid temptation by never charging more than 50% of your total credit limit.
2. Join your company’s retirement plan and try to contribute as much as you can, especially when the contribution is made from before-tax earnings.
3. Can you imagine your heirs receiving only half of your hard-earned assets? That’s what could happen if you don’t take estate planning seriously enough.
4. Life insurance provides the kind of life you would have given your family if you had lived to do it.
5. One of the greatest gifts you can give is to help pay the education costs for your grandchildren. Any gifts, regardless of how large, made to anyone for the purpose of funding education, do not incur gift taxes as long as the payment is made directly to the educational institution.
6. What is an immediate annuity? It’s a contract that pays an income that you and/or another person may never outlive.
7. Protect your health and your wealth with a health care proxy and durable power of attorney. These legal documents help ensure your wishes will be carried out if you become mentally or physically incapacitated due to accident or illness.
8. Think of financial security as lifelong accumulation—even if you only do it in small amounts.
9. Donate items you don’t need, or use, to charity. Be sure to keep your receipts. You may be entitled to an income tax deduction.
10. Buying low and selling high is a lot easier said than done!
11. Add up your current and future liabilities, such as your mortgage, education expenses, and how much you’ll need for retirement. Then, ask yourself this question: “Is my family’s future worth protecting?”
12. A shorter mortgage isn’t always better. Take a long-term mortgage, and then make additional payments when you can. If things become financially “tight,” you can stop making additional payments.
13. Protect your tangible assets. Have the right amount of homeowners and automobile insurance coverage for liability and disasters.
14. Withdrawing retirement plan assets before age 59½ may lead to a 10% penalty, while not withdrawing enough after age 70½ may lead to a 50% penalty. The moral of the story? Know when to make withdrawals.
15. When you’re buying a new or used car, don’t forget to factor in any state sales taxes. If state sales taxes are 5% and the sticker price on the car of your dreams is $20,000, that car will really cost you $21,000.
16. Reward your children for hard work—they’ll soon understand that hard work is often accompanied by rewards.
17. Organize your financial house. Set up a filing system and organize your investments and insurance policies.
18. Make sure you own disability insurance. It will help replace your income if you are unable to work due to an illness or injury.
19. Did you know that if you work while you receive Social Security benefits, your benefits might be taxed?
20. Like regular checkups with your physician, regular reviews with a financial professional are important to your financial “health.”
21. Keep your total monthly debt from exceeding 35% of your gross income.
22. If your company doesn’t have a retirement plan, be sure to contribute the maximum to an Individual Retirement Account (IRA).
23. Pay yourself first. As you set your budget each month, set aside money for savings and expenses first. What’s left over can be used for other purposes.
24. If you die without a will, you will leave the distribution of your assets up to someone else.
25. If you expect an income tax refund, refrain from giving yourself a pat on the back. Sure, your entire refund amount is your money. But, it’s also money that has been at work for Uncle Sam, not you. An accountant can help you establish an income tax plan that keeps your money working for you.

If you made it this far, there has to be 1-5 things you can start doing today!  Financial success does not happy by accident or on its own. You must put the work in.  So, implement some of these strategies and get to it!