10 Steps to Upgrade Your Finances

January is a great time to have a checkup on your financial health and implement change to help get you to the next level with your finances.  Here are 10 steps you can take to make sure you are getting the most out of your money:

1. Review Your Accounts: Take inventory of all your accounts, ensuring each serves a purpose. Consolidate accounts where possible, automate contributions, and prioritize funding your emergency savings. Emergency savings of at least 3 to 6 months of expenses can prevent having to go into credit card debt for every bump in the road.

2. Leverage Employer Benefits: Explore benefits like legal reimbursements or estate planning resources that may reduce costs or provide valuable support.  Take advantage of your Flex or HSA accounts for medical expenses. If you have a EAP (Employee Assistance Program), understand what each of the benefits are that it provides and be sure to use them when needed.  Do you have Stock Options, Employee Stock Purchase Plans or Restricted Stock Units?  Ask your Human Resources department if you are unsure what your benefits are and how to use them.

 3. Optimize Retirement Savings: Check your retirement contributions, especially employer-matched plans, and aim to save at least 15% of your income if you are able. Don’t forget to review and update beneficiaries on your plan.

4. Set Specific Money Goals: Identify 2–3 clear, measurable goals such as paying off a certain amount of debt, saving a specific amount for a down-payment on a house, or planning a vacation. Stay flexible and adjust as needed throughout the year.

5. Check Your Investment Strategy: Evaluate if your investment accounts align with your goals, ensure diversification, assess risk levels, and decide if professional help is needed.  Make sure money that you absolutely need in the next few years is in something safe like a high yield savings account or CD.

6. Prepare for Tax Season Early:  Gather and organize documents in January and February as they are sent to you.  Be aware that some documents may come as email notifications so you will need to log in to print or save them to your tax file.  If you have a business, be sure things are neat and organized so you or your tax accountant do not miss deductions or make mistakes. 

7. Automate Contributions: Simplify your savings process by automating deposits to retirement accounts, emergency funds, and other financial priorities.  Setting up automatic transfers towards your savings goals can free up your mind for other things as well as help ensure that you stay on track towards the goals. 

8. Plan for the Unexpected: Strengthen your financial safety net with an emergency fund and insurance coverage to reduce stress during unforeseen events. Your life insurance through your job is generally not the only life insurance policy you should have.  Speak to a life insurance expert if you have questions about what is right for your situation. 

9. Have Regular Money Dates: If you have a significant other, regularly review your progress on financial goals with them. Being on the same page with money and your goals can help propel you forward much faster than if you disagree on these things.  Enlist support from a trusted person or professional to help stay on track and adjust as life changes.

10. Review Your Expenses:  At least a few times a year, you should review your spending and see if there are things you can cut out.  Are there apps, subscriptions, services that you are no longer using or you aren’t happy with, but are still paying for them?  At a minimum, try to automate all of your bill-paying so that you aren’t having to remember to send payments, but check in on them to make sure it’s still bringing value to you. 

Taking control of your finances in the new year doesn’t have to be overwhelming. By breaking it down into manageable steps, you can build a solid foundation for achieving your goals and securing your future. Whether it’s streamlining your accounts, setting specific money goals, optimizing investments, or seeking professional help, each action you take brings you closer to financial wellness. Remember, flexibility and consistency are key—life happens, and your plan can adapt as needed. Start small, stay focused, and celebrate your progress along the way to make this year your most financially empowered yet!