5 money moves for women in the new year

PHOTO: iStockphoto.com/AndreyPopov

Stay on top of your money by starting simple

Nicole Burdick

Get organized

It’s hard to stay on top of our investments when we can’t remember where they are. It’s easy to put off dealing with an old company 401(k) because we’re busy or to avoid logging into our current plan because we’re scared of what we’ll find. The embarrassment about “not being on top of it” sends us into a perpetual cycle of procrastination.

That can end today! Block a time to make a list of all your financial accounts. Make a list of to-do’s as you go — you may want to consolidate inactive retirement plans, review how your account is invested, increase your contributions, update your beneficiaries, etc.

Get it on the calendar

The key to making meaningful progress toward your financial goals is to set aside regular time to check in on your progress. Set up a monthly recurring event for a money check-in. Skim your transactions for overspending, subscriptions you need to cancel or fraudulent transactions.

If you find it helpful to set a budget, that’s great. However, if you hate the idea of budgeting so much it makes you avoid your money altogether, simply review your spending and ask yourself what changes would serve you well. Budgeting can be similar to dieting; it is helpful for those who need the structure but triggering and joy-sucking for free spirits. If this describes you, consider practicing mindful spending — paying attention to how money flows in and out of your life without needing to control it. Money is a tool to support you, not the other way around.

Put your own oxygen mask on first

As women, we often care for everyone else’s needs before our own. Unfortunately, this trend is reflected in our finances. Sometimes it looks like putting our career aside to be a caregiver for small children or aging parents. Other times it looks like reducing our retirement contributions to pay for our kids’ college tuition or help meet a family member’s financial need.

Here’s my take: Your own financial stability is one of the best gifts you could give your family. No one intends to become a burden in their old age, but that’s the risk of putting off our own financial needs, such as saving for retirement or building up our emergency reserves. Even if times are tight and you can’t invest like you want, commit to doing what you can.

Your own financial stability is one of the best gifts you could give your family.

Take advantage of opportunities

The old year may be over, but the window to make retirement contributions isn’t. If you’ve been meaning to contribute to a traditional IRA or Roth IRA, you may still be able to. Ask your accountant or financial adviser if you are eligible to make a prior year contribution of up to $6,000 (or $7,000 if you’re 50 or older). If it appears you’ll be eligible to contribute in 2023, consider automating — or increasing — your monthly contributions.

If your employer offers a match, don’t pass it up. These matches are probably the closest we’ll get to free money, so even if it means rearranging parts of your budget, do whatever is necessary to be eligible for the full match.

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Ask for help

Honestly, money is complicated, and there’s a good reason we struggle to make progress toward our financial goals. The good news is that there are plenty of professionals who can help. Money coaches work on your money mindset, financial therapists address money baggage, insurance agents help with all sorts of insurance. Accountants help with tax planning, and financial advisers help manage your investments.

The fact that you can do it all yourself doesn’t mean you should. Cheers to a financially confident 2023!

Nicole Burdick is a Bellingham-based LPL Financial Advisor and the founder of Money Maven Financial, a female-focused financial empowerment practice where she helps her clients become financially confident. Visit www.moneymavenfiancial.com.

The opinions voiced in this content are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision.

Securities and advisory services offered through LPL Financial, a Registered Investment Advisor, Member FINRA (www. finra.org)/SIPC (www.sipc.org).