As W-2s, account statements, and otherbryear-end financial summaries roll in, the beginning of the New Year is the perfect time to look back on what was earned, saved and spent during 2013. So beforebrPunxsutawney Phil comes out of his burrow to predict when spring is coming,brtake some time to get your financial house in order.
How much have you saved?
Whether you simply resolved last yearbrto save more or you set a specific financial goal, it's time to find out howbryou did. Start by taking a look at your account balances. How much did you savebrfor college or retirement? Were you able to increase your emergency fund? Ifbryou were saving for a large purchase, did you save as much as you expected?brChallenge yourself in the New Year to save more so that you can make steadybrfinancial progress.
How did your investments perform?
Review any investment statements you'vebrreceived. How have your investments performed in comparison to general marketbrconditions, against industry benchmarks and in relationship to yourbrexpectations and needs? Do you need to make adjustments based on your ownbrcircumstances, your tolerance for risk or market conditions?
Did you reduce debt?
Tracking your spending is just asbrimportant as tracking your savings, but it's hard to do when you're caught upbrin an endless cycle: Paying down your debt and then borrowing additional money,brover and over again. Fortunately, end of year financial statements — such asbrmortgage, credit card and auto — will reveal the amount of debt still due andbrhow much was paid off. Consequently, you may find you're making more progressbrthan you think. Keep these statements so that you have an easy way to trackbryour progress next year.
Where do your employment taxes go?
If you're covered by Social Security, the W-2 you receive from your employer bybrthe end of January will show how much you paid into the system via thebrcollection of payroll taxes. If you're self-employed, you report and personallybrpay these taxes, which are called self-employment taxes. These taxes help fundbrfuture Social Security benefits. However, many people have no idea when theybrcan expect to receive Social Security in the future. To avoid uncertainty, getbrin the habit of checking your Social Security statement annually to find outbrhow much you contributed to the Social Security system. Additionally, based onbrcurrently law, keep track of what future benefits you might expect.
To access your statement, sign up for a mySocialSecurity account atbrthe Social Security Administration's website,www.socialsecurity.gov.
Has your financial outlook changed during the past year?
Once you've reviewed your accountbrbalances and financial statements, your next step is to look at the entirebrfinancial picture. Taking into account your income, savings and investments, coupledbrwith your debt load, did your finances improve over the course of the year? Ifbrnot, why?
Then it's time to think about thebrchanges you would like to make for next year. Start by considering thebrfollowing questions:
· brWhat are yourbrgreatest financial concerns?
· brDo you need help orbradvice in certain areas?
· brAre your financialbrgoals the same as they were last year?
· brDo you need to revisebryour budget now that you've reviewed what you've earned, saved and spent?
Ensure a stronger financial position inbrthe New Year by using what you've learned about your financial — both good andbrbad — to set your course for a fresh start.
Perhaps an Independent Review of your Finances are on your New Year'sbrresolutions...
Feel free in contacting, Giovanni A. Malatesta, at 817.948.0366 orbrGMalatesta@GallantLegacyGroup.com