Year End Review: What you did well and what to improve?

Financial Life Planning for Busy Parents

It’s that time of year when we all swear we are going to get to the gym more often, eat healthier, limit our time on social media, and make a better effort to stay in touch with family and friends. Looking ahead feels good, but how many times have you set those goals only to have abandoned them by January 31st? In this year-end review episode, Matt Robison and I discuss looking back before you look forward. In particular, when examining your finances it is imperative to understand past actions in order to prepare for future financial decisions. Let’s say last year at this time, you resolved to make exercise a priority for the New Year. If you are like most people, you probably stuck with it for a few days, maybe a few weeks, perhaps even a month but then it fell by the wayside. Did you ever stop to ask yourself why you were making the goal? To get healthier? Why did you not succeed? Was it the time commitment? The discomfort of sore muscles and stretched lungs? Looking at your past behavior can be the key to succeeding in future endeavors, including financial goals. Matt loves colorful metaphors. The best way to approach your year-end financial review is with a 💩 sandwich. Yes, you read that correctly. What are we talking about?

1. Figure out what you did well (your first slice of bread).
   1. Make the time to sit down and review your expenses.
   2. Look at your income sources over the year, including salary, investments, rental income, etc.
   
   
2. Take a look at what you can improve (the 💩).
   1. How were your expenses this year? Examine your spending patterns and identify areas where expenses may have increased or decreased.
   2. How’s your debt? Assess your progress in debt reduction, including credit cards, mortgages, student loans, etc.
   3. Have you checked your portfolio lately? Evaluate the performance of stocks, mutual funds, retirement accounts, etc.
   
   
3. Make progress and plan for moving forward (the last slice of bread).
   1. Be sure to look at all your employee benefits to take advantage of everything offered to you.
   2. Identify the positives and focus on consistency.
   
   

Did you do one thing really well this year? Anyone can perform exceptionally once in a while. Consistency is what truly creates greatness. Take professional athletes, for example. All the best are the first in and last out because they play consistently. The best way for you to be financially consistent is to work on one thing at a time and do that job well. If it is budgeting, look at your past expenses, predict future spending, set limitations and stick to them every month. Achieving consistency will help you realize financial success. Remember, look back before you look forward to enjoy a prosperous 2024.