Reassess Your Finances in the New Year

It’s January 2018, and the perfect time to hit the ‘reset’ button on your personal and family finances. This means setting budgets, finding places to slim down your spending, and knowing where exactly you are focusing your saving. Already on top of your money management? Great! But, as situations constantly change it doesn’t hurt to reassess where you are with your finances. Here are 8 tips (for each year of the decade) to help you enter the New Year on top of your finance game!

  1. First, get familiar with your “discretionary income”. After removing taxes and essential living costs (e.g., rent, monthly payments), what’s left? That is the amount which is left to use at your “discretion”. How much of this discretionary income are you spending, and how much are you saving?
  2. Use a budgeting app or online tools such as Mint: Money Manager or These help you get a daily read on your spending, track credit building, and retirement plan.
  3. Reduce cost of debt – Consumer debt is not cost effective or a tax deductible form of debt. Consider turning to home-equity lines of credit as a lower cost source of cash. That said, don’t fall into making it your go-to source of funding.
  4. Reassess your portfolio – are your assets where you want them? Is it in line with your goals and objectives? Are there areas to be improved upon? Assistance in this part can be found through online software, or from a qualified financial advisor.
  5. Conduct a review of beneficiaries on retirement plans, annuities, and insurance policies. Verify that your current legal documents reflect your wishes.
  6. Consolidate your 401(k) plans. You may have different 401(k) plans with a variety of past employers. Time consuming as it is, consolidating your 401(k) plans will allow for easier tracking or changing of your retirement plan.
  7. Increase your 401(k) or other retirement plans. Consult your human resources department and find out if it is possible to automatically increase your 401(k) annually. This small increase each year will make a big difference as you head into retirement.
  8. Contact BMR Insurance at 714-838-1911 for a review of your current insurance policy, or to get a free quote. Understanding your insurance policy, and getting the most cost-effective plan for you and your family is key in managing your finances in 2018.

We at BMR Insurance want our clients to be effectively managing their futures– making it that much easier for our to do our best job in serving you! Happy New Year!


No comments yet.

Leave a Reply