As we head into the New Year, you may want to develop a plan for your money and financial health. Perhaps getting your money in check is already a part of your New Year’s resolution, so here are a set of some financial baby steps that you can implement this year that can help you grow your net worth and get you on your way to financial freedom.
Keep A Close Eye on Your Health Insurance Plan
Because we live in such uncertain times, it is crucial to have a reliable health insurance policy. The right health insurance policy can set you up for financial success or ruin. Setting a strategy in place for your end-of-the-year planning for the New Year can be daunting. Knowing your health insurance thoroughly and what you are covered for, and how much your out-of-pocket expenses are can empower you to save a lot of money down the road.
Prepare Ahead Of Time For Tax Season
It is important to carefully work with a Certified Public Accountant (CPA) who can guide you through gathering the proper documents and receipts that will streamline your filing process during tax season. A CPA is also crucial because they can ensure that you file your return correctly to get the maximum refund. If you are a gig economy earner, it is essential also to be aware of your tax breaks and write-offs. A CPA can be invaluable throughout this process.
Watch Your Credit Closely
Credit is a crucial part of the American economy, and if you would like to be in control of your financial future and grow your net worth, it is important to monitor your credit activity regularly. With the uptick in fraud and identity theft, it is important to be proactive and use credit tracking apps to stay in the loop.
Ask For More
The pandemic has ushered in an unprecedented time in the U.S. job economy. Currently, because of the high rate at which people quit their jobs, companies are having a hard time finding top talent. If you plan to stay in your current job role in 2022 and ask for a raise, it is crucial to put a case together that highlights your strengths and what you bring to the table.
Set Goals
Setting goals and sticking to them can give you an edge financially and help you to better organize your money, and in return, grow your net worth. Goals fall into two categories: short and long-term goals. A good long-term goal, for example, would be to buy and own a home, and a great short-term goal can be to grow your savings account within a short set of time. Checking in on your goals occasionally to see your progress is also always a great way to stay accountable and track your progress.