2023 Financial To-Do List

 

1. Review your budget to ensure you are on track to meet your financial goals.
2. Check your credit report for errors and disputes any inaccuracies.
3. Pay off high-interest credit card debt.
4. Increase your emergency fund to 3-6 months of living expenses.
5. Contribute the maximum amount to your employer-sponsored 401(k) or IRA.
6. Evaluate your current insurance coverage and determine if you need to make any changes.
7. Create a plan for paying off student loans.
8. Review your investment portfolio and make any necessary adjustments.
9. Review your current mortgage terms and consider refinancing if it makes sense.
10. Research and consider contributing to a health savings account (HSA) if you are eligible.
11. Research and consider contributing to a college savings plan, such as a 529 plan.
12. Consider a Roth conversion of your traditional IRA if you are eligible.
13. Review your will and estate plan and make any necessary updates.
14. Research and consider Long-term care insurance
15. Review your retirement plan and make any necessary adjustments.

1. Create or update your budget

1. Create or update your budget: Developing a budget will help you understand your income and expenses and give you a clear picture of your financial situation. A budget will also help you identify areas where you can cut costs, such as eating out or subscriptions, and help you prioritize your spending. You can create a budget using a spreadsheet or budgeting software, or use a budgeting app to track your spending on the go.

2. Sign up for your company’s 401(k) match

2. Sign up for your company’s 401(k) match: If your employer offers a 401(k) plan and matches a percentage of your contributions, make sure you are taking full advantage of this benefit. By contributing enough to receive the full match, you are essentially getting free money to invest for your retirement. If you are not currently enrolled in your company's 401(k) plan, consider signing up and contributing as much as you can afford. The earlier you start saving for retirement, the more time your money will have to grow.

3. Get life insurance to protect your family

3. Get life insurance to protect your family: Life insurance can provide financial protection for your loved ones in the event of your unexpected death. It can help pay for expenses such as funeral costs, outstanding debts, and ongoing living expenses. There are two main types of life insurance: term life insurance and whole life insurance. Term life insurance provides coverage for a specific period of time, while whole life insurance provides coverage for the entire lifespan of the policyholder. It's important to review your needs and budget to determine which type of life insurance is right for you and your family. Consider talking to a financial advisor or insurance agent to help you understand the options available to you.

4. Get your free credit report

4. Get your free credit report: You are entitled to one free credit report per year from each of the three major credit reporting agencies: Equifax, Experian, and TransUnion. Reviewing your credit report will give you a clear picture of your credit history, including information on your credit accounts, payment history, and any outstanding debts. It's important to check for errors and to ensure that the information is accurate. If you find any inaccuracies, you can dispute them with the credit reporting agency. You can request your free credit report at AnnualCreditReport.com. Additionally, you can also consider signing up for a credit monitoring service which will alert you of any changes to your credit report.

5. Shop around for cheaper insurance

5. Shop around for cheaper insurance: Shopping around for insurance can help you find more affordable coverage that meets your needs. It's important to review your insurance policies regularly to ensure you are getting the best rates.

For example, you can start by comparing auto insurance rates from different providers. Many companies offer discounts for things like good driving records, multiple cars, or safety features on your vehicle. You can also look into bundling your insurance policies with one provider, which can result in discounts.

You can also research different health insurance options, such as private plans or plans offered by the government, and compare their costs, coverage, and benefits.

It's also a good idea to evaluate your insurance coverage to make sure you have the right amount of coverage for your specific needs. While it may be tempting to opt for a lower coverage to save on premium cost, it could put you at a financial risk if you were to make a claim.

Remember to compare not just the premium cost but also the deductibles and the coverage offered.

6. Build an emergency fund

6. Build an emergency fund: An emergency fund is a savings account set aside for unexpected expenses, such as a medical emergency, job loss, or major home repair. It's important to have an emergency fund in place so you don't have to rely on credit cards or loans in case of an emergency.

Start by setting a goal for the amount you want to save for your emergency fund. A general rule of thumb is to have 3-6 months' worth of living expenses saved, but you can adjust this based on your personal circumstances and financial goals.

Next, decide on a savings plan. You can set up automatic transfers from your checking account to your emergency fund account or set a specific amount that you will save each month.

Make sure to choose a savings account that is easily accessible in case of an emergency but also offers a decent interest rate. Avoid using this account for non-emergency expenses and try to build the fund as quickly as possible.

Having an emergency fund will give you peace of mind knowing that you have a cushion to fall back on in case of financial emergencies.

7. Start investing for your future

7. Start investing for your future: Investing is a way to grow your money over time and can help you achieve your long-term financial goals, such as retirement or buying a house. There are many different types of investments, including stocks, bonds, mutual funds, real estate, and more.

One of the first steps in investing is to determine your risk tolerance, time horizon, and financial goals. This will help you determine the types of investments that are right for you.

Next, you can consider opening a brokerage account with a reputable firm, which will allow you to buy and sell various types of investments. Many online brokers offer low-cost options for new investors.

You can also consider working with a financial advisor who can help you create an investment plan that is tailored to your specific needs and goals.

Keep in mind that investing comes with risk, and it's important to diversify your portfolio to spread the risk. It's also a good idea to regularly review your investments and make adjustments as needed.

Remember, the earlier you start investing, the more time your money has to grow.

8. Get rid of your expensive TV bill

8. Get rid of your expensive TV bill: There are many ways to reduce or eliminate your TV bill, including cutting the cord and switching to streaming services.

One option is to cancel your cable or satellite TV service and instead subscribe to streaming services such as Netflix, Hulu, or Amazon Prime Video. These services offer a wide range of TV shows and movies at a lower cost than traditional cable or satellite TV packages.

Another option is to use an over-the-air (OTA) antenna to pick up local channels for free. This can be a great way to get local news and live sports without paying a monthly fee.

You can also bundle your internet and streaming services with your phone and home security to reduce your overall bill.

Before making any changes, evaluate your viewing habits and the channels you watch the most. Make sure the channels you want to watch are available on the streaming service or OTA antenna that you choose.

Remember, cutting the cord doesn't mean you have to sacrifice the shows and channels you love, it just means you have to be a bit more selective in how you access them.

9. Calculate your net worth

9. Calculate your net worth: Net worth is a measure of your financial health and is the difference between your assets and liabilities. To calculate your net worth, simply add up the value of all your assets (such as savings accounts, investments, property, etc.) and subtract your liabilities (such as credit card debt, loans, mortgages, etc.).

To calculate your net worth, you can create a simple spreadsheet that lists all of your assets and liabilities. This will allow you to see your net worth at a glance and track it over time.

It's important to regularly calculate your net worth to see how your financial situation is improving or deteriorating over time. This will help you identify areas where you need to make changes, such as reducing debt or increasing savings.

You can also use online tools and apps that can automate the process of calculating your net worth.

Keep in mind that net worth is not the only measure of financial success, but it can be a good indicator of your overall financial health.

10. Go on a cheap vacation with travel rewards credit cards

10. Go on a cheap vacation with travel rewards credit cards: Travel rewards credit cards can be a great way to earn free flights, hotel stays, and other travel perks. By using a credit card that earns travel rewards, you can accumulate points or miles that can be redeemed for free travel.

When choosing a travel rewards credit card, look for one that has a sign-up bonus, and offers points or miles for everyday purchases like gas, groceries, and dining. Also, look for a card that offers rewards that align with your travel habits and preferences.

To maximize your rewards, use your credit card for all of your purchases and pay off the balance in full each month to avoid interest charges.

You can also look for ways to combine rewards from different cards or programs to get the most value for your points or miles.

Keep in mind that travel rewards credit cards often have annual fees and high interest rates, so make sure you understand the terms and fees before applying.

Also, remember that, to use your rewards, you will need to book your travel through the credit card's rewards program, and the availability of award seats can be limited. But if you plan ahead and use your rewards strategically, you can save a lot of money on your next vacation.

11. Find a work-from-home career

11. Find a work-from-home career: With the rise of technology and the internet, many careers now offer the opportunity to work remotely. This can have many benefits, such as saving on commuting costs, having more flexibility with your schedule, and being able to work in a comfortable environment.

To find a work-from-home career, you can start by researching companies that offer remote work options, and looking for job postings that specifically mention the ability to work from home. Some industries that frequently offer remote work options include information technology, customer service, marketing, and writing.

You can also look into starting your own business or becoming a freelancer in a field that you are passionate about. This can give you the opportunity to work from home and be your own boss.

When applying for remote work positions, it's important to highlight your skills and experience that are relevant to the job and show how you can be productive and communicate effectively while working remotely.

Keep in mind that remote work is not for everyone, and it requires a high level of discipline and self-motivation. Make sure to set boundaries, create a dedicated workspace and schedule and communicate effectively with your team.

12. Fill out an emergency binder

12. Fill out an emergency binder: An emergency binder is a collection of important documents and information that you would need in case of an emergency. It can be helpful to have all of this information in one place, so that it is easily accessible and can be quickly located.

Some of the items that you may want to include in your emergency binder are:

• Copies of important documents (e.g. ID, passport, birth certificate, insurance policies)
• Contact information for family and friends
• A list of emergency contact numbers (e.g. police, fire department, hospital)
• A list of medications, allergies, and medical conditions
• Copies of important financial documents (e.g. bank account information, credit card numbers, social security numbers)
• Instructions for shutting off utilities (e.g. gas, electricity, water)
• Copies of insurance policies and contact information
• A list of emergency supplies
• A list of emergency evacuation routes

It's a good idea to review and update your emergency binder regularly, especially if you move or if there are changes in your personal or financial information.

It's a good idea to keep the binder in a secure and accessible place, like a fireproof safe or a waterproof container, and also consider making a digital copy of the binder, and store it in the cloud or an external hard drive.

It's also important to share this information with other members of your household, and make sure they know where the binder is located, and how to access it in case of an emergency.

13. Have a money meeting

13. Have a money meeting: A money meeting is a regularly scheduled time where you and your partner (if applicable) can discuss your financial goals, review your budget, and make any necessary adjustments.

During a money meeting, you can discuss your spending and saving habits, review your income and expenses, and set financial goals for the future. This can help you stay on track with your budget, and ensure that you are working towards your financial goals.

It's important to make sure that both parties are involved in the money meeting and that there is open communication.

You can set a regular meeting time, like once a month, and use this time to review your budget, check in on your progress towards your financial goals, and make any necessary adjustments.

You can also use this time to discuss any financial concerns you may have, and come up with a plan to address them.

During the meeting, you should also review your account balances and bills, and make sure that everything is up to date and on track.

Also, it's important to review your credit reports and credit score.

Having a money meeting can be a helpful tool for staying on top of your finances, and for ensuring that both parties are on the same page when it comes to financial matters.

14. Check your debt progress

14. Check your debt progress: Keeping track of your debt is an important part of managing your finances. By monitoring your debt progress, you can see how much you owe, what your interest rates are, and how much you are paying towards your debt each month. This can help you make a plan to pay off your debt more quickly and efficiently.

To check your debt progress, you can start by gathering all of your outstanding debt information, including the balances, interest rates, and minimum monthly payments for each account.

Then, you can use online tools or apps to create a debt repayment plan, or you can use a spreadsheet to track your progress.

You can use the snowball method or the avalanche method to pay off your debt:

• The snowball method focuses on paying off your smallest debts first, regardless of the interest rate. This can help you quickly pay off a few debts and give you a sense of accomplishment, which can motivate you to continue working on paying off your debt.
• The avalanche method focuses on paying off your highest-interest debts first. This method can save you more money in the long run, as the high-interest debt is costing you more in interest charges each month.

You can also consider consolidating your debt to lower the interest rate and simplify the payments.

It's important to also make sure you don't add more debt while trying to pay off debt. Avoid using credit cards and taking out loans while you're trying to pay off your existing debt.

Checking your debt progress regularly can help you stay on top of your finances, and make sure that you are making progress towards becoming debt-free.

15. Set new financial goals

15. Set new financial goals: Setting financial goals can help you stay motivated and focused on achieving your financial dreams. It's important to have both short-term and long-term financial goals, as well as both small and large goals.

When setting financial goals, it's important to make them Specific, Measurable, Achievable, Relevant, and Time-bound (SMART)

Examples of short-term financial goals could be:

• Saving a certain amount of money in an emergency fund within the next 3 months.
• Paying off a specific credit card balance within the next 6 months.

Examples of long-term financial goals could be:

• Saving for a down payment on a house within the next 5 years.
• Building a retirement fund that can support you in 20-30 years.

You can also set goals related to your career, like getting a raise or starting a side hustle.

It's important to have a plan in place to achieve these goals, and to track your progress. Review your goals regularly and adjust them as needed.

Remember that financial goals are not just about money, they are also about your values and the life you want to live.

Having a set of financial goals can help you stay motivated and focused on achieving your financial dreams.

Your financial to-do list – Summary

Here's a summary of the financial to-do list:

1. Create or update your budget
2. Sign up for your company’s 401(k) match
3. Get life insurance to protect your family
4. Get your free credit report
5. Shop around for cheaper insurance
6. Build an emergency fund
7. Start investing for your future
8. Get rid of your expensive TV bill
9. Calculate your net worth
10. Go on a cheap vacation with travel rewards credit cards
11. Find a work-from-home career
12. Fill out an emergency binder
13. Have a money meeting
14. Check your debt progress
15. Set new financial goals

This list includes a variety of financial tasks that can help you get a better handle on your finances and work towards achieving your financial goals.

It includes tasks such as creating a budget, signing up for a 401(k) match, getting life insurance, checking your credit report, shopping for cheaper insurance, building an emergency fund, investing for your future, getting rid of expensive bills, calculating your net worth, using travel rewards credit cards for a cheap vacation, finding a work-from-home career, filling out an emergency binder, having a money meeting, checking your debt progress and setting new financial goals.

By completing these tasks, you can improve your financial situation and work towards achieving your financial goals.