How I Plan to Kick Off The New Year

January 02, 2014

A new year often brings new changes. In fact, some research shows that we’re more likely to initiate changes in our behavior during the beginning of a time period like a year, month, or week. Here are 3 steps I plan to take this month to kick off the new year:

1)      Max out my Roth IRA and HSA contributions. This isn’t really a new behavior since I try to do it every year (both accounts can grow tax-free) but it’s worth mentioning for a couple of reasons. First, income limits on Roth contributions and HSA contribution limits are both increasing this year so if you haven’t been eligible to make a Roth IRA contribution you may be now and if you can contribute to an HSA, you can now contribute a little more. Second, while you have until April 15th to contribute for the previous year, this is one time I don’t like to procrastinate. Not only might you forget, but the longer you wait, the more time you’re losing for that money to be growing potentially tax-free. Time can truly be money in this instance so if you have the cash available, this is one resolution you can check off fairly quickly.

2)      Donate clothes and books. Eating out isn’t the only time when less is more. We all probably accumulate lots of things we don’t need that only serve to clutter up our life. In my case, that’s lots of clothes that are worn out, don’t fit anymore, or I never plan to wear again and books that do nothing but take up space. Ideally, you can try selling unwanted clothes and books at consignment shops and used bookstores. Otherwise, you can donate them to the Salvation Army and your local library for a tax deduction.

3)      Spend less eating out. The two most common topics for New Year’s resolutions involve health and money. Both of those areas have a common enemy for me: eating out. My one New Year’s resolution is to address both by preparing healthier meals at home more often and dining out less. When I do eat out, I also plan to take more advantage of discounts from sites like Groupon, Living Social, Amazon Local, and Restaurant.com.

How do you plan to start 2014 off on the right financial foot? Do you have any financial resolutions for this year or any actions you tend to take each January? Leave your thoughts in the comments section below.