Welcome to the Weekly SUMmary - 01/01/2021
HAPPY NEW YEAR!
I hope everyone was able to close out 2020 as well as possible. It's in the past. Let's move forward with intentionality.
I challenge you to make ONE intentional act with your money this year.
I know there are mixed feelings on resolutions, so what I would like to suggest is to put intentionality into your finances. There's no sugar coating it, 2020 was rough. 2021, let's make better. One of the running jokes in my field is that people typically spend much more time planning their annual vacation than they ever do planning around their finances. While this may not have been possible in 2020, I believe with most of us, that's likely accurate. That's why there are people like me out there. To remind us all that we need to be intentionally planning for our financial future.
Although, at the time of this writing, things are uncertain as to what stimulus will potentially arrive for most of us, PLAN for it. I understand with stresses of life, you may want to book the next vacation or buy something you've been wanting, but I ask you to consider splitting that with some sort of planned saving or additional debt payment.
If you haven't revisited your retirement savings plan, DO IT! The power of compounding is incredible, I believe so the sooner one begins to put money away where it may have the ability to grow exponentially over time, the better.
If one put just $1,000 in an investment that could grow annually at 7.2%* over time, it will double every 10 years. This year it's $1,000, in 10 years, it's $2,000, 20 years, $4,000, and 30 years, it's $8,000! From a $1,000 initial investment!
- Pay off debt!
- Stop using Credit Cards
- Invest your stimulus payment
- Contribute to a retirement plan
- Begin your wealth transfer with an annual gifting plan
- Each one of these items could be expanded on or have multiple options. Consider which option(s) are best for you and your situation prior to making any changes.
Take time to consider how you can make ONE change regarding your finances this year.
If you would like assistance with this or just want to have a conversation about options, please let me know.
* This information is based on the Rule of 72. See more here.
The hypothetical example is for illustration purposes only and is not intended to be representative of actual results or any specific investment, which will fluctuate in value. The determinations made by this example are not guarantees or projections, and no taxes or fees/expenses are included in the calculations which would reduce the figures shown. Please keep in mind that it is possible to lose money by investing and actual results will vary.
Any information provided is meant to be educational in nature and not a specific recommendation for any one's individual situation. Please consult with an advisor prior to making any financial changes.