My “NO” Year’s Resolutions!

This New Year’s Eve, millions of people across the country will make New Year’s resolutions about things they’d like to do in 2015.  I’m all in favor of this annual tradition but to mix things up a bit, I’m going to suggest a few things that you DON’T want to do in 2015—something I’m calling “No” Year’s resolutions:

  • Say “NO” to living beyond your means

Many of us get in the habit of spending what we make but if we forget to set money aside for something unexpected, we could end up falling behind later in the year. Choose NOT to spend everything you make, and set money aside for a rainy day. If you haven’t done this already, set aside $20 a week for the next 12 months. By this time next year, you’ll have $1,000 in your “rainy-day” fund.

  • Say “NO” to buying on credit

Using credit to make purchases can be convenient, but it can also lull us into buying more than we should. Avoid the temptation. Put the plastic away (and that goes for debit cards, too) and start using cash to pay for certain items such as groceries, gas, clothing, and entertainment.

  • Say “NO” to retail

Retail items are generally marked up 30-50% or more to help pay for marketing and other costs associated with overhead. Let go of the retail mentality and start shopping at places that offer goods for less than retail. This could mean buying store-brand or generic merchandise, shopping at places like Goodwill, or finding deals online through eBay, Craigslist, Living Social, or Groupon.

  • Say “NO” to dining out

Taking the family out for an occasional meal is one thing, but eating out every day for lunch and/or dinner can really put a cramp on the budget. Choose instead to pack lunches at home or bring last night’s leftovers. For dinner, consider cooking roasts or other larger meals that can be kept and served several times throughout the week.

  • Say “NO” to chasing investment performance

As the stock market continues to zoom along, it can be tempting to want to reallocate your current and future investment dollars into stocks but if you don’t have a long investment time horizon or if you have a tendency to pull money out of the market when things get a little shaky, you may want to reconsider. Instead, take a risk-tolerance assessment to identify an appropriate asset allocation and re-balance your portfolio accordingly. If you’re not comfortable making investment decisions, use an asset-allocation or target-date fund instead.

  • Say “NO” to unnecessary income taxes

There are several ways to grow your wealth tax free. For example, if your company offers a high-deductible health plan, you can contribute tax free to a health savings account.  Young investors may want to put retirement dollars in a Roth account and parents may want to utilize 529 plans for future scholars to take advantage of tax-free growth.

  • Say “NO” to the retirement guessing game

When it comes to your retirement, don’t leave it to chance. Use a retirement plan estimator to see how well you are on track to reach your goals. If you are not currently on track, now is the time to make changes to get you closer to where you’d like to be.

  • Say “NO” to inappropriate life insurance

Different types of life insurance are appropriate for different situations so consider the following: If other people depend on you for income, then you probably have a need for term life insurance. If you are in a high tax bracket, have a large taxable estate, or have a large portion of your estate tied up in illiquid assets, then permanent life insurance may be what you are looking for.

  • Say “NO” to probate

Probate is the legal process for transferring your assets to loved ones after you pass away, but for those left handling your estate, probate can be time consuming and expensive.  There are ways to avoid probate, including naming beneficiaries on retirement accounts, adding joint owners, and putting assets in trust. Doing so will ensure your assets go to the right people in an expedient, cost-effective way.

These are just a few of the things that you may want to say “NO” to in 2015. By doing so, you will be saying “YES” to financial wellness. That’s something to look forward to in the new year!

 

More like this:

The No-Tracking Budget

The No-Tracking Budget

Putting together a budget is one thing, sticking to it is another ...
Read More
3 Clever Ways to Trick Yourself Into Saving Money

3 Clever Ways to Trick Yourself Into Saving Money

Here are a few tricks I use to keep me on the straight and narrow when I’m tempted to raid ...
Read More
gifts for your love that last a lifetime

5 Ways To Help Those Most Impacted By COVID-19

With COVID-19 sending millions to work-from-home and forcing businesses to temporarily shut their doors, nearly everyone is experiencing dramatic changes ...
Read More

Subscribe

Be the first to know when new resources are published.