The world of personal finance can feel exhausting because there’s a lot for you to keep up with. You have due dates for bills, deadlines to make contributions, and other time constraints to meet.
Many people find that it’s difficult to keep up with these things and to be financially organized. They struggle to meet these timelines which damages their credit and causes them to waste money.
But, everything can change when you start using a money calendar! To start, it will help you sort through your finances and create a monthly to-do list. Then, as you start crossing items off your agenda, you’ll be moving down the path towards reaching your financial goals!
Here are some of the events you should include on your money calendar.
It’s the beginning of a New Year and there’s a lot to do to get off to a great start. By putting in the time and effort up front, you’ll be setting yourself up for success in months and years that come!
January is a busy month. Begin the year by updating your personal financial statement and reviewing your assets and liabilities. Then, check how your investments performed and net worth changed over the last year.
The start of the year is also a good time to update your monthly budget. Include the pay raises you’ll receive in it, along with some degree of lifestyle creep. Also, look at the year ahead and think about the big ticket items you plan to buy. Then, add reserve funds to your budget so that you’ll have enough money to pay for them in cash!
Many people splurge over the holidays and face big credit card bills in January. If this happens to you, try using a system to get debt free. It will help stop the power of compounding from derailing your year ahead.
After this review, you’ll have a clear picture of your current financial affairs. With this information, determine the changes you want to make and then set SMART financial goals to ensure that they happen!
February marks the beginning of tax season. At the start of the month, you’ll begin receiving tax documents for all your income types from the prior year. You’ll get W-2s, 1099s, 1098s, and K-1s for any business that you own.
As you get these documents, keep them together and store them in a safe place. Then, contact your CPA and get on their calendar so you can discuss your income and tax strategy.
February is a much slower month than January. Use it as an opportunity to review your credit. Go to AnnualCreditReport.com and check one of your reports. Be sure to investigate your accounts, payment history, and dispute any that are showing wrong information.
March gets recognized as the beginning of Spring, so what better time to start your Spring Cleaning. Go through your home; declutter and donate the items you no longer use, or see if it’s possible to rent them out using a site like Spinlister.
If you’re like most people, you’ll find some items that have never been used or that still have the tags on them. Why not take this as an opportunity to review your spending and consider how you can be a more conscious consumer.
Review your insurance policies in March, too. Check the amount of coverage you have and the premiums you pay. Then, use sites like Policy Genius and Lemonade to compare rates and see if you can save!
April’s known for one thing on your money calendar, and that’s taxes. You’ll have until the 15th to file your return or an extension.
Many people get a large amount of money back for their tax refund in April, too. But, most don’t realize this cash comes from giving the IRS an interest-free loan over the previous year, either!
If you receive a large refund each year, you may want to reduce your tax withholdings. Doing this lowers your refund, but allows you to keep more of your money throughout the year. This is cash that you could invest and earn a rate of return on, rather than letting sit and lose value from inflation!
April 15th is also the deadline for making contributions to your HSA and IRA for the previous year. IRAs are one of the best ways to grow your nest egg and everyone should contribute to one.
Did you earn a lot of money in the previous year? If you did, you can still fund a Roth. All you need to do is a backdoor Roth IRA contribution to get the benefits of this retirement vehicle!
Financial Literacy Month gets celebrated throughout April, too. Pick one money skill you want to improve and spend this month getting better at it.
After the stress of taxes, things begin to slow down as Summer approaches. Use this time to think about your long-term financial plan.
A few questions for you to consider are:
The end of June signals the conclusion of the first half of the year. This should prompt you to check on the progress towards your goals. If you aren’t as far along as you should be, consider what you can do differently in the remaining half of the year to reach them.
Also, it’s been 4 months since you checked your credit last. Head back to AnnualCreditReport.com and review your report from a different bureau. Then, take a few minutes to see if anything is listed on it that shouldn’t be.
July 1st marks the start of the second half of the year. You have just 6 more months to reach your yearly goals.
Begin this month by reviewing your spending history and budget. Then ask yourself:
As the summer winds down, the events on your money calendar start to pick back up. While there aren’t any pressing deadlines this month, there are a few things you should consider.
The first is to review the beneficiaries listed on your accounts. These are the people or organizations that will become the lawful owner of your assets if something were to happen to you.
Reviewing your beneficiaries is especially important if you’ve had a major life event in the last 12 months, too. If there’s been a birth, death, or marriage in your family then make sure your account information is up to date with where you want your money to go.
August also marks the start of the school year for the majority of the country. As your kids head back to school, get rid of some of the items they’re no longer using. Try selling stuff on Craigslist, eBay, and Facebook Marketplace to generate some extra funds to put towards your goals.
The end of September closes out the 3rd quarter. Now, there’s only 3 months left in the year to reach your goals.
Are you on track to reach them? If not, now is the time to make any necessary adjustments before you enter the 4th quarter.
You should also review your insurance policies again in September. Check your coverage and shop around for better rates. You may find that you can reduce some of their hidden costs by paying in full, too!
Most employees start Open Enrollment for health insurance in October. During this time, review your benefits, their costs, and any new ones offered by your company.
Also, look at the year ahead and think about any necessary medical procedures you may have been putting off. It could be a smart money move to switch to a higher-cost plan now so that you’ll save money on medical treatment in the future.
October marks 4 months since your last FREE credit check, too. Head back over to AnnualCreditReport.com and check the last remaining Credit Bureau’s report to make sure nothing is listed on it that shouldn’t be.
In a few short weeks, the holidays will arrive. Start planning for them now by creating your holiday budget. Decide who you’ll be buying for, how much you’re going to spend, and then start saving!
The end of the year is right around the corner, too. So, check to see if you’ve met your insurance deductibles and copays for the year. If you have, then now is the time to schedule any remaining checkups and procedures that you can. This will help you save money before your insurance deductibles reset at the beginning of the year!
The last thing to check into, and the most important, is your vacation time. It’s estimated that over 55% of American’s don’t use all their paid time off and I don’t want you to be one of them. See how many days you have left, then invest in yourself and schedule some time off!
In November, Healthcare.gov conducts its open enrollment. If you’re self-employed or need to purchase on this exchange then you’ll have until the middle of December to sign up. Otherwise, if you miss the deadline you’ll need to consider getting a short-term health plan to have coverage in the upcoming year.
December is quite the busy month. You have Holiday parties to attend, friends and family to see, and key financial deadlines to meet.
This is the last month you can contribute to your employer-sponsored retirement plans for the year. Make sure you’re getting all the free money that’s offered through your company and consider increasing your contribution to reduce your taxable income.
December is also your last opportunity to make charitable donations for the year. Think about volunteering, supporting the less fortunate, or donating to organizations that are working to make the world a better place.
Each year gets busier and goes by faster than the last. It always seems like there is more and more to do, only with less time to do it in.
Use a money calendar to help you get your financial life in order. It will give you a better understanding of the steps you need to take today and in the months to come. This way, when December 31st arrives, you’ll be able to look back and see all the progress you’ve made towards making your dreams come true!
What’s your favorite event on the money calendar? Comment below.
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