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Ten Financial Resolutions For A Brighter New Year

Ten Financial Resolutions For A Brighter New Year

Dear Reader: It’s that time again — the time to reassess your finances and commit to making next year your best financial year yet. So in the spirit of the season, here’s my annual financial shape-up column.

But before you read on, here’s something to think about: it’s not about how many resolutions you make, but how many you’re actually able to keep. Just as it’s easier to stick with resolutions to shape-up physically if you have concrete and realistic goals, giving yourself some attainable financial goals will help you develop — and stick with — a financial program that will produce results.

Keep these goals front and center as you take these recommended steps to a more financially secure 2016.

1) Assess your current situation. This is the first step in making positive changes. Look at what you own and what you owe to find out if you’re in the red or the black. An online worksheet can help you easily add up assets and subtract liabilities to get a snapshot of your current net worth. If you have net worth statements from previous years, review and compare them to help understand your financial trends — and decide where to make changes.

2) Look at last year’s spending. Is your money going where you really want it to go? It will if you spend mindfully. Basically this means making spending decisions in the context of your goals. So if one of your top goals is to build your retirement nest egg, do you need to spend less to save more? Does taking that big vacation mean dining out less often? Whether or not you need to reprioritize spending, having an awareness of patterns will help you make better decisions throughout the year.

3) Make a 2016 budget. Now that you’ve looked at last year’s spending, focus on your budget for 2016. Track your spending for a month to see where your money is really going. Do you need to make adjustments — a little more here, a little less there? Take a fresh look at your essential and nonessential expenses (an online calculator can help). If during the year you have to spend beyond your budget, decide then and there how you’ll bring things back into balance. Don’t let overspending become a habit.

4) Get on top of debt. Not all debt is bad (for instance, a mortgage), but there’s really nothing good about carrying a credit card balance. Systematically pay down balances by focusing on higher interest cards first. Once you’re at zero, resolve to charge only what you can pay off each month.

5) Build an emergency fund. Everyone’s situation is different, but bad things — an illness, the loss of a job — can happen to anyone. So protect yourself. Ideally, keep enough cash in an easily accessible account to cover three-to-six months’ worth of essential expenses (more if you’re retired). Promise yourself you won’t touch this money unless you absolutely have to.

6) Review your insurance coverage. Certain types of insurance are essential: health, car, homeowners or renters insurance. Make sure you have adequate coverage for these important things. You might then look into disability insurance if you’re in your peak earning years; an umbrella policy if you have significant assets; and life insurance if you have dependents. But be cautious about insurance you probably don’t need. To me, money for things like life insurance for children, flight insurance, or even rental car insurance is better spent elsewhere.

7) Check your progress towards retirement. This is a big one. Whatever your age, you should be saving regularly — ideally, automatically — whether it’s through an employer plan, an IRA or both. Use the New Year as a motivation to review your retirement goal and see if you’re on target. If not, ramp up your savings. If you’re just starting to save and you’re in your 20s, 10 to15 percent of your annual salary should do the trick. In your 30s, you should earmark 15 to 25 percent toward retirement. In your 40s and older, you’re looking at 25 to 35 percent.

8) Rebalance your portfolio. This is the ideal time to review and rebalance your portfolio. If you didn’t do a 2015 year-end review, start 2016 by looking at your asset allocation and making changes to keep your investments on track with your goals and timeline. Take advantage of online tools and quarterly reports available from your broker. If your investments have grown beyond your comfort level in managing them, seek out a financial advisor who can partner with you throughout the year.

9) Create/review your estate plan. You may not need a complex plan, but don’t put off creating at least a simple will, particularly if you have minor children. Review beneficiary designations on your retirement accounts and insurance policies, especially if you’ve had a life change such as a new baby, marriage or divorce. An advance health care directive is also a necessity to protect both yourself and your loved ones.

10) Keep the dialogue going! Lastly, make money an ongoing topic of conversation. Talk to your spouse about your plans and decisions. Don’t hesitate to share your financial know-how with your children or other family members. Encourage everyone to ask questions and freely discuss financial concerns and insights.

I hope this list provides inspiration to renew, refocus and resolve to get — and keep — your finances in the best shape ever. Here’s to a happy and financially rewarding 2016!

Carrie Schwab-Pomerantz, Certified Financial Planner, is board chairwoman and president of the Charles Schwab Foundation and author of “The Charles Schwab Guide to Finances After Fifty.” Read more at http://schwab.com/book. You can email Carrie at askcarrie@schwab.com. For more updates, follow Carrie on LinkedIn and Twitter (@CarrieSchwab). This column is no substitute for individualized tax, legal or investment advice. Where specific advice is necessary or appropriate, consult with a qualified tax adviser, CPA, financial planner or investment manager. To find out more about Carrie Schwab-Pomerantz and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com. COPYRIGHT 2015 CHARLES SCHWAB & CO., INC. MEMBER SIPC. DIST BY CREATORS SYNDICATE, INC. (1215-7321)

Photo: 401(K) 2012 via Flickr

Five Healthy Resolutions You Won’t Regret Making In 2015

Five Healthy Resolutions You Won’t Regret Making In 2015

By Emily Abbate, FITBIE.com (TNS)

Raise your hand if you’re overly tired of hearing New Year’s resolutions about weight loss. Granted, we can’t see your hands and doubt that you’re actually glaring at the dim light of your computer screen holding five digits in the air, but there’s no doubting you can sympathize. Year after year, so many of us resolve to drop a few pounds and change our ways the moment the clock strikes midnight and whatever metallic New Year’s dress you wore ends up in the “drop off at the dry cleaner” pile.

The reality? There are better resolutions. Not discounting the benefits of weight loss. But, there are healthy things you can do to change your life that don’t revolve around numbers on a scale. Start 2015 off on the right foot with these five must-make healthy resolutions that have nothing to do with weight loss:

1. Do more at-home workouts: Whether you live in a small apartment or have a living room fit for Shaq and his family, working out isn’t something that has to happen at a gym or studio. The great thing about the HIIT craze (one of 2015’s biggest fitness trends, we might add) is that typically, the workouts involve minimal space and time. The first step to working out at home, however, is getting comfortable with the idea. Make small tweaks to your space to make it feel more cozy for sweat sessions: Invest in a few sweat towels, snag a water bottle, put down a yoga mat. You’ll be amazed at what the changes can do for your motivation.

2. Take a break: Going a mile a minute and multitasking are essentially parts of today’s plugged-in culture. Do yourself a favor, take a step back, take an Insta-break, and be in the moment more often. Not only will you learn new thing about the people you interact with on a day-to-day by being more attentive, but you’ll learn more about yourself, too.

3. Drink four more cups of water each day: Sure, we could suggest that you gulp down the recommended eight glasses, but what if you’re already doing that? Whatever your daily intake may be, make it your mission to up that in 2015. The benefits? Clearer skin, weight loss and better metabolic activity.

4. Put down the iPhone/Pad/Device an hour before bed: Easier said than done. We get it. But the truth is that the LED light from your favorite iDevice messes with your nervous system and makes you more alert. When your sleep quality is better, your memory is improved, inflammation is curbed and according to a Harvard University study, creativity is improved.

5. Talk it out: It’s not easy to articulate how things make us feel sometimes, but talking out your thoughts and potential issues with a psychologist or counselor could make a major difference on your mental health. Don’t just take our word for it, research agrees. According to UCLA psychologists, verbalizing feelings can have a significant therapeutic effect on the brain. Translation? Getting your worries out in the open can have a bigger effect than you expect.

Photo: Ed Yourdon via Flickr

Fitness Tip Of The Month: Headline Your Goals With ‘I Can’

Fitness Tip Of The Month: Headline Your Goals With ‘I Can’

By Leslie Barker, The Dallas Morning News (TNS)

At the beginning of a new year, many of us tend to be a bit of a martyr in our self-imposed deprivation: No more smoking. No more eating poorly. No more sitting around like a slug.

You can also put a positive spin on resolutions, which leads to this month’s tip: Preface your goals with “I can.”

You can — eat vegetables and fruits with every meal, maybe. Take the stairs today. Venture outside your exercise comfort zone once a week. Do five push-ups before breakfast. Be gentle with yourself.

When you do that, how can your year start out anything but full of hope, full of promise?

Photo: Tyler Blazey rock climbs on Dec. 11, 2014 at Upper Limits gym in St. Louis. (Roberto Rodriguez/St. Louis Post-Dispatch/TNS)

Even If You Backslide, Resolving To Improve Your Health Is Worthwhile

Even If You Backslide, Resolving To Improve Your Health Is Worthwhile

By Harvard Health Letters, Premium Health News Service

If you’ve ever made New Year’s resolutions that include adopting better health habits, you probably know they aren’t easy to keep. The reason resolutions often don’t work is because lasting change is usually not accomplished in a dramatic leap but through a series of incremental steps. However, research suggests that any effort you make is worthwhile, even if you find yourself backsliding from time to time.

Even if you don’t want to make a formal list of promises to yourself, the dawn of a new year is still a good time to take inventory of your health and to consider what beneficial changes you can reasonably accomplish. Dr. JoAnn Manson, professor of medicine at Harvard Medical School and chief of preventive medicine at Brigham and Women’s Hospital, Boston, Mass., cautions not to embark on something you’re not committed to.

“No matter how good an activity is for you, you’re not going to be able to sustain it if you hate doing it,” she says.

If you make resolutions this year, you may want to consider some of the following. They’re ranked in order of difficulty, easy ones first:

1. Floss every night

Flossing keeps plaque (collections of bacteria) from building up on your teeth and reduces gingivitis and periodontal disease—two conditions that can lead to tooth loss. Recently, scientists have also discovered that flossing might save more than your smile.

A series of studies have revealed associations between periodontal disease and increased risk of cardiovascular disease, diabetes, osteoporosis, and even death. In a study of 5,600 healthy people in a retirement community, people who flossed nightly had a 30 percent lower risk of dying within the decade than those who didn’t floss or who flossed at other times of the day.

It’s hard to find an excuse for failing to floss. Dental floss is readily available and comes in a variety of widths, textures, and flavors. There’s even a special version for people who have bridges or braces. Flossing isn’t hard to work into your schedule: it takes less than two minutes.

2. Walk 30 minutes a day

A brisk 30-minute daily walk is one of the most efficient ways to reduce your risk for heart disease, stroke, dementia, diabetes, osteoporosis, and colon cancer. It will also help you sleep better and ward off depression.

Walking is the simplest and least expensive form of exercise. You don’t need to join a gym or health club or invest in special clothing or equipment. If you’ve tried to get going before and have had trouble keeping with the program, you may want try the following:

—Enlist a buddy. Most things are easier when you don’t try to do them alone, and the obligation to meet a friend for a walk may be just what you need to get started and keep you going. Just make sure that your friend is as committed as you are.

—Dress appropriately. If you’re not comfortable, you won’t want to keep going. Wear shoes with good support. In any climate, it’s wise to dress in layers that you can shed as you heat up. It’s also a good idea to use sunscreen and to wear sunglasses on bright days, even in the winter.

—Start slowly. If 30 minutes seems daunting, begin with a five-minute walk and add another five minutes each week. You’ll be up to 30 minutes by six weeks.

3. Learn something new

Dementia research is indicating that becoming a perpetual student may help to preserve your memory and reasoning ability. This doesn’t mean maintaining a pursuit you’ve already mastered, like crossword puzzles or chess, but gaining a new competency. And physical exercise is as important as mental exercise. Here are some of the best things you can do:

—Study another language. If you’re already bilingual or multilingual, don’t let your second or third languages languish. A study published in 2013 indicated that now-bilingual immigrants to the United States who couldn’t read or write English when they first arrived in this country pushed dementia back an average of four years later than similar people who spoke a single language. If you haven’t mastered a second language, try to learn one.

—Learn to play a musical instrument. You might also resume playing one you put away years ago. Now that the pressure to make the high school orchestra is off, you may enjoy making music for your own enjoyment.

—Acquire a new physical skill. Any form of exercise can reduce the risk of dementia, but mastering a new physical skill has additional benefits. Take up a new sport, try a pottery or dance class, or even make an effort to do more tasks with your non-dominant hand.

—Enroll in a class. See what the local college, university, or community college has to offer. Many communities also have adult education courses that offer opportunities as varied as poetry writing, painting, and web design.

4. Eat better

Like exercise, a healthful diet will reduce your risk of most major diseases. In short, that diet contains at least:

—five servings of fruits and vegetables a day

—protein primarily from nondairy sources, such as fish, poultry, nuts, beans and other legumes

—whole grains

—polyunsaturated and monounsaturated oils

—no foods containing trans fats.

Unlike exercise, good eating isn’t free, and it may take some effort to change your grocery shopping and cooking habits. If you’ve been using a lot of processed convenience foods, you may want to start by making one substitution at a time.

For example, replace white bread with a whole-grain version, use olive or canola oil instead of butter, or snack on nuts or fruit instead of chips or cookies. If you’re unsure about what changes to make in your diet because of your medical problems, your primary care doctor can refer you to a nutritionist to help get you started.

5. Make new friends

Expanding your social connections can reduce the risk of cardiovascular disease and dementia and increase your chances of living longer. And adding new friends later in life can be particularly important if your circle is shrinking because of death or relocation.

There are all kinds of ways to form new connections. Joining groups of people who share your interests or goals, especially in your neighborhood, is one of the best. It also helps if the group you join includes people of different ages, backgrounds, and perspectives. Volunteering can be a particularly good way to introduce yourself to new people and social circles.

6. Lose weight if you need to

If you are overweight—particularly if you have excess abdominal fat—your risk of heart attack, stroke, diabetes, and breast cancer is higher than it should be. Carrying too much weight can also contribute to arthritis, tendinitis, and sleep apnea. A loss of 5 percent to 10 percent of your body weight can reduce your health risks substantially.

The pledge to lose a few pounds might be the most commonly made—and broken—New Year’s resolution. If you’re considering trying to shed pounds, don’t set a low weight or a small clothing size as a goal. Instead aim for a body mass index (BMI) of 25 and a waistline under 35 inches.

If you’ve tried and failed to lose weight before, ask your doctor to refer you to a nutritionist for counseling. A nutritionist can help you identify the foods and eating habits that may be keeping you from losing weight and design an eating plan that is both nutritious and satisfying. And if you’d like some emotional support in sustaining a new way of eating, your nutritionist should be able to help you find a group program.

7. Stop smoking

Smoking ranks at the top of the practices most likely to harm your health, increasing the risk of heart disease, stroke, chronic obstructive pulmonary disease (COPD), and lung cancer, as well as many other cancers. If you’re still a smoker, you know how hard it is to stop. If you need some encouragement, consider the following:

One year after quitting, you’ll have cut your excess risk of heart disease in half.

Five years after quitting, you will have eliminated your excess risk of stroke.

Ten years after quitting, you will have reduced your excess risk of lung cancer by half.

Fifteen years after quitting, you will have eliminated your excess risk of heart disease.

If you’ve failed before, don’t try to go it alone. A medically based cessation program can help you develop a realistic plan for quitting. Such programs can provide the appropriate drug treatments and psychological support and your insurance is likely to cover most of the costs. — Harvard Women’s Health Watch

Photo: Wikimedia Commons