I’ve never been one to buy into the idea of Mayan calendar prophecies, hence why I haven’t emptied out my savings in panic or started doomsday preparations. We’ve waved goodbye to the festive period, and as we head into 2013, it’s time to focus on getting our finances organized.
Let me lead by example. Here’s my financial to-do list for 2013, hoping to turn my monetary shambles into a model for future success.
FIRST RESOLUTION: COMMIT TO FINANCIAL TRACKING.
I experimented with this a bit in 2012, towards the end of each month, I would gather and note my varying spending habits. However, my record-keeping lacked consistency and structure, leaving me with insignificant data that only succeeded in highlighting my spendthrift tendencies.
Now, for 2013, I have chosen to adopt the use of financial tracking software instead of this self-torturous pattern. As I mentioned earlier, my chosen software is Personal Capital, a service I recently reviewed here on Everything Finance. I’m eager to kick-start the year with disciplined financial tracking via this platform.
SECOND RESOLUTION: OPEN MY ROTH IRA.
I intended to open my Roth IRA last year, but an absurd tax complication stalled the process. I discovered that married persons filing separately could open Roth accounts but bizarrely enough, couldn’t contribute a cent. A peculiar rule indeed.
Moving on, this predicament will change this year, as my husband and I will file jointly, enabling the opening and funding of my Roth. I aim to determine my maximum yearly contribution, divide it into twelve installments, and set up an automated payment system from my savings account.
As a self-employed individual, completing this resolution is paramount for my retirement savings and tax obligations – both income and self-employment. Working for yourself requires vigilance to ensure the security of your future – there are no supervisors or payroll departments; you are the overseer of your income and responsible for your family.
THIRD RESOLUTION: ADDRESS MY STUDENT LOAN DEBT.
I’ve been dutifully making automatic payments for over a year; however, the balance on my student loan stubbornly refuses to decrease. I’m on Obama’s income-adjusted plan (*now closed to new applicants), with payments capped at 25 years. Remarkably, my student loan company circumnavigated that rule, piling on the interest, reducing my payments to merely covering the baseline. My game plan for 2013 is to challenge my student loan company and compute a payment that will indeed chip off the debt.
Whether you have your own financial resolutions for 2013, we’d love to hear about them in the comments below!
