OK, now that you have all those “other” resolutions made how about some financial resolutions for 2014? Suggestions:
- I will review my investment allocations. Do I need to rebalance my portfolio?
- I will plan before making a significant financial move instead of after. History cannot be changed, only our recollections change but not the facts.
- I will keep a questioning mind when I hear something that sounds too good (or too bad) to be true. I realize that many times they are not true.
- I will put more away for my retirement, especially via my retirement plan.
- I will review my employer’s benefit plans to make sure I am taking advantage of all available and appropriate tax savings.
- I will work towards paying off all my personal debts such as credit cards, car loans, and lines of credit.
- I will not borrow against my home equity except in a real emergency as I could lose my house if I have financial difficulties later. The interest is also often not deductible.
- I will keep taxable income, such as operating businesses and many partnerships, out of my IRA. I do not want my IRA to pay income taxes.
- I will keep charitable receipts for all contributions over $249 and bank records for those below. I will not wait until April 2015 to get these receipts at the last second as I know I must have them on hand when I file my return.
- I will remember that my hair dresser/barber is not a tax expert and will run tax savings ideas by a professional before I implement them.
- I will remember that I only owe income taxes because I am fortunate enough to have a decent income.
photo credit: Pepe Martin