Celebrating New Year’s Eve and New Year’s Day are always a lot of fun. On New Year’s Eve, my husband and I celebrate with our young children by ringing in the New Year with friends who also “risk” trying to see if their little ones can make it to midnight as well! Sometimes we make it to midnight, sometimes we depart by 9pm as someone is melting down.
On New Year’s Day, I wake up early to participate in a long run with a local running group. I love to kickstart my year on a healthy note. Then, as we’re lounging during the day, my husband and I sit down at our computer and pull up all of our investment and banking account balances, to update our annual balance sheet. After reflecting on our progress over the past 12 months, we then spend time putting together our financial road map for the year. It’s something we’ve done annually for the past several years to ensure we allocate our money to pay for the kids’ college expenses, our retirement and other needs.
Ok, I know it sounds like a boring way to spend your day off! But this tradition is what we enjoy and when we’re done updating our financial plan, it certainly makes us feel good to know that our money will be working for us during the entire year. And it gives me, especially, the peace of mind to enjoy all of the fun family activities throughout the year.
Of course, even if you don’t devise a personal financial plan on New Year’s Day, I encourage you to write down a plan soon for the upcoming year. To get started, here’s a guest column I wrote that was published in early December on Kiplinger.com.It shows how we allocate our money into various categories to cover our long-term needs, with enough left over for vacations. Happy New Year and may it be a prosperous one for you!