Your January Financial To-Do List

Set your savings regimen right for the year.

Ruth Saldanha 21 January, 2022 | 1:18AM
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Ruth Saldanha: Welcome to Morningstar. I'm Ruth Saldanha. A new year is a time for new beginnings and that includes for your money as well. Some of us might have resolutions to save more, invest more, or allocate better. So, what are some of the things that you should be doing right now to get a head start on your money for the rest of the year? This is your January financial to-do list.

Morningstar's Director of Personal Finance, Christine Benz, recommends that you start off by considering the big picture. Ask yourself questions like how am I doing financially and where do I want to be? If you are in the accumulating stage or saving for goals, then quantify how much you need to save and by when. Benz says that, if possible, it's wise to set a savings goal at about 15% of your income. If you're a higher-income worker, aim even higher at about 20%. If you're already retired, consider your spending rate, especially early on in retirement, where she suggests you be more conservative, especially if you're an early retiree.

Now, one of the things a lot of us love to think about is asset allocation. But Benz suggests that now is the time to discuss your asset allocation as a household and think holistically about your plan. What debt is your household paying down and what goals are your household goals? What are you spending on and where does that leave your retirement? Think about all of these things and have a plan to tackle your savings and spending for the year, both individually and as a household. Good luck.

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About Author

Ruth Saldanha

Ruth Saldanha  Editorial Manager at Follow her on Twitter @KarishmaRuth.


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