Financial tips to start the year

There is no better time to get your finances in order than at the beginning of the New Year.

Start your year with these financial tips.

Prioritize your debts

Review all of your debts and organize them by payments and interest rates. You should pay off the debts with the highest interest rates, mostly likely your credit cards, first. It may make sense to use certificate of deposits, savings bonds or other cash holdings to pay down high interest debt. This strategy could save you thousands of dollars over time.

Review your retirement plans

You should always make sure to contribute at least up to your employer’s match towards your 401(k) plan. Some plans actually give you an opportunity to “catch up” before the end of the year. It may also be beneficial to increase your contributions in order to take full advantage of the tax benefits.

Review your beneficiaries

It is a good idea to periodically review your beneficiaries, especially in the event of a new child, grandchild, divorce or marriage. This will ensure that your life insurance plan is in line with your current situation.

Review your budget

Look at your income and expenses and review your plan for saving. Did you accomplish last year’s financial goals? What can you do to motivate yourself this year? If you don’t already have a solid budget, make it a resolution for this year.

Review your insurance coverage

Take a second look at your home, auto and any other insurance policies. Do you have enough coverage or too much? Review your policies with your agent to see if you should change your deductibles or add or remove any coverage.

The New Year is a good time to do some comparison shopping as well, to see whether or not switching companies makes sense. Companies frequently adjust their pricing in order to stay competitive or due to cost fluctuations, so you may be able to find a better deal than when you first purchased your policy.

For expert advice on how to make the most of your financial situation and start the year off right, speak with an expert at John B. Wright Insurance.