As with every year before it, 2018 brings with it some new challenges and a heap-load of New Year’s resolutions. Some of these resolutions are highly personal and exclusive to the individual that made them, and then others are universal and should be engaged by everyone at some level. One such resolution is the commitment to increasing your wealth in 2018. While you should definitely not wait until a new year begins to make a commitment to improving your life in any way, including increasing your current financial situation.
There are a number of different strategies that can help you to achieve greater wealth in 2018 and we will look at 10 strategies that can implement this year and that will have an impact before the year’s end.
1. Consider Implementing New Tax Strategies
When the top financial minds in the world are polled to determine the things they consider first in their financial movements, understanding tax liabilities is in the third priority slot. Depending on what tax bracket you are in, it may be beneficial to you to accelerate your tax deductions ahead of any changes that may be taking place due to the new tax code.
2. Reevaluate Your Current Investment Portfolio
First of all, I want this to apply to anyone, no matter where you are currently. So, if you don’t have an investment portfolio, start one. You can get in the game for a lot less than you think. For those of you who already have investment, take the time to review your current mix to determine if you are diversified enough to protect yourself against the downside of the market and any major corrections (which are definitely coming).
3. Review and Evaluate Your Insurance Coverage
While the average person does not make the connection, your insurance coverage significantly impact your capacity to create and sustain wealth. You should evaluate your home, health auto, and life insurance coverage to ensure that you have adequate coverage and to make sure that you have the right coverage for your situation.
4. Take a Look at Your Retirement-Plan Contributions
Are you getting the most out of your 401 (k)? Could the money that you are currently investing in your retirement plan serve your better by being invested somewhere else? Or, could you be one of the few Americans that are actually getting all they can out of their 401 (k) and should probably contribute more?
5. Review the Beneficiaries of Your Estate
You should periodically review the list of beneficiaries associated with your assets, especially if there have been any major life changes, such as marriages or deaths.
6. Overhaul Your Spending Budget
As important as increasing revenue and dividends is important to increasing riches and wealth, the ability to properly manage what you already have is equally important. Generating a lot of revenue loses its impact that that revenue is being hemorrhaged in other areas. Take the time to make sure that you have tight and disciplined spending budget in place.
7. Leverage Technology to Automate and Generate Savings
Whether you are using a mobile app or a desktop program, there are multitudinous technological tools that will help you automate your savings, investments and money management. Take full advantage of these tools, which will simplify the entire process.
8. Create Financial Goals and Create Plans to Meet Them
It is a proven fact that when you set concrete financial goals and then you plan and schedule these goals, the chance of reaching them increases exponentially. Don’t just say you want to save money or increase your portfolio performance — come up with concrete numbers and then make plans that will outline how you are going to reach those goals.
9. Use the Funds in Your Flexible Spending Account
You will be surprised how much money is lost in flexible spending accounts each year. With most flexible spending accounts, if the money is not used for qualified expenses during the qualifying year, those funds can be forfeited. So use it or lose it.
10. Don’t Miss Open Enrollment for Health Insurance
If you are a business owner or employee who has to purchase their own insurance, you should keep your eye open for open enrollment periods, which is the ideal time to shop around for better coverage. Not only can you find opportunities to save money, but you can also find more comprehensive coverage for your money.