The winters are always a great time to indulge and spend on a few whims/luxuries. And on the flip-side, this shopper-friendly period between December and January are also the best time to prepare for a financially fruitful year ahead. These months give you a lot of time to work on your finances and make them better. 

However, like most other new year’s resolutions, people tend to fail at keeping their financial resolutions as well. This is usually a result of making unrealistic goals that may be fairly impossible to achieve. Here are a few ways you can kick-start your financial planning in 2020. 

1. Year-end tax planning

In order to start the year off right, you need to make sure that you’ve got your taxes in order. We all know how daunting taxes can get, and whether or not you saw drastic changes in your financial standing over the last year, it’s always better to hold a quick year-end tax planning meeting with your financial planner. 

This also gives you a head start to stay ahead of the curve when it comes to planning your taxes for the coming year. To keep it short, it’s always better to be prepared for the inevitable. 

2. Review Your Goals

Your financial situation is most definitely different from what it used to be at the beginning of 2019. Even if there’s only been a minute change, it’s in the best interest of your money to periodically review your financial goals and change them if necessary. Financial planning is a dynamic process, and if your financial plan does not align with your changing financial needs then all your time, energy, and efforts would be in vain.  

3. Spend To Save

If you’re a business owner or even if you are a freelancer, this period is the best time for you to spend a little more to save a little more. This is a particularly good time to spend money on an expensive piece of equipment or to replace old depreciating assets with new ones. 

By making these purchases before the end of 2019, you’ll be able to show these as expenses and reduce your tax liability to a large extent. But make sure not to make expenses you don’t need to make. Strategize and make smart decisions that you won’t regret later. You could start by looking at the purchases you’re planning to make next year and choose the most important ones. 

4. Prioritize Your Debts

This doesn’t need to be explained. We all know that we’re better off without debt. Before 2019 ends, figure out how you plan to tackle your debts in the next year. If possible, rejig your financial plan to accommodate for the extra money you’ll need to clear out your debts faster. 

Also, try and see if you can focus on allocating a separate fund dedicated to generating wealth to clear out your debts.  

5. More Time = More Money

As your investments grow, you need to be able to better understand what your portfolio is doing for you. This helps you and your certified financial planner make better decisions and build a financial plan that caters to your specific needs. 

Make it a point to spend more time on your finances in 2020. This doesn’t mean spending every day trying to learn more about financial planning. You only need a few hours every month or week to understand your portfolio and finances better. The easiest way is to schedule a short, regular meeting with your financial planner. This will help you keep a tab on how your money is working for you and how you can gauge the effectiveness of your financial plan.