Wrapping Up the Year & Charting a Course for the Next

As the year draws to a close, it's the perfect time to reflect on your current financial situation and consider what you want it to look like this time next year. 

We want to celebrate accomplishments, learn from challenges, and set the stage for a successful year ahead. 

Here are 3 things to consider as you reflect on the past year:

What is my net worth?

Tracking your net worth is crucial because it provides a holistic snapshot of your financial health, encompassing both assets and liabilities. When you are saving into retirement accounts or paying off debt, these can leave you feeling like you have less at the end of each month - but in reality, your net worth is going up.

What was my household's total income?

Knowing your true household income enables you to understand your cash flow, make informed budgetary decisions, and ensure that your spending aligns with your income. This is important as well when you are looking to the next year - are you wanting to discuss a raise with your employer, move up in the company, or consider looking at outside jobs to increase your income?

What is my investing or savings rate?

When planning for retirement, it's essential to consistently contribute to retirement accounts. Regularly tracking your investing rate ensures that you are contributing to retirement savings consistently, helping you build a sufficient nest egg. The higher the investing rate, the quicker you reach your goals.

OR 

What is my distribution rate?

Keeping an eye on how much money you're taking out of your retirement savings is important to make sure you have enough to last throughout your retirement. By knowing this, you can see if you're spending at a rate that matches how much your portfolio can make and aligns within your financial plan.

How to make substantial progress for the next year:

1. Set Clear Goals + Prioritize:

Not all goals are created equal. Identify the most critical objectives for the upcoming year and prioritize them. This ensures that you focus your time and energy on the initiatives that will have the greatest impact on your personal and professional life.

2. Create an Action Plan:

Outline the steps required to achieve your goals. A well-defined action plan provides a roadmap, making navigating the journey toward success easier. Break down tasks into actionable items and assign timelines to keep yourself accountable.

3. Find Resources + Team to Help

Having a partner who can help you work towards your financial goals and knows how most efficiently to reach them can make a tremendous difference. Teaming up with a knowledgeable financial professional can ensure you are doing everything correctly and most efficiently so you can remove the worry from your financial life.

4. Evaluate and Adjust Regularly 

Periodically assess your progress throughout the year. Be open to adjustments and refinements to your plan as circumstances evolve. Flexibility is a valuable trait in achieving long-term success.

End-of-year planning is not just a ritual but a strategic practice that can significantly impact your future. 

By reflecting on the past year and carefully planning for the next, you position yourself for growth, resilience, and success. As you bid farewell to the current year, embrace the opportunities ahead, armed with the insights gained from your journey so far. 

Here's to a purposeful and prosperous new year!

Will