1. Plan your expenses in advance

The beginning of the year is the perfect time to plan for any major expenses you expect in 2026. Maybe you will need a new roof or porch, your HVAC unit might be in its final year, or it could be time for a new vehicle. Whatever large expenses you anticipate in 2026 (or next year), start saving in advance to avoid depleting your emergency fund or using credit card debt. Popular budgeting apps such as YNAB make it really easy to plan for these large, irregular expenses.

2. Make a plan to pay off high-interest debt

If you have any high-interest debt, there’s no better time than now to make a plan to eliminate it. Mathematically, it’s always better to start with your highest-interest debt and work your way down. If you can pay off all of your high-interest debt this year, that’s great, but don’t get discouraged if it will take you longer to eliminate your debt. Check your balances so you know exactly how much debt you have (it’s not uncommon for those with debt to not know exactly how bad the problem is) and budget as much as you can towards paying off your debt.

In the Financial Order of Operations, the only steps before paying off high-interest debt are covering your highest insurance deductible and getting your employer match in your retirement account. After that, everything should be put towards paying off your debt until it is gone.

3. Consolidate forgotten retirement accounts

Remember that 401(k) you had with your first job 15 years ago? Whatever happened to it? There are about 32 million forgotten or left-behind retirement accounts in the US, and many of those accounts are probably not invested appropriately or have high expenses and fees.

If you think you may have a lonesome retirement account out there somewhere, it’s worth taking some time this year to consolidate your accounts. Chances are rolling them into your current employer retirement account or IRA could give you access to better investments and lower fees and expenses. Check out our free download for help deciding what to do with your old retirement account. Even if those forgotten accounts are better off on their own, it would be wise to take a look at their investment allocation and adjust as necessary.

4. Check on your student loans

If you have any federal student loan debt, make sure your loans are current and you are enrolled in an appropriate repayment plan. Some repayment plans have been eliminated and eligibility for loan forgiveness has been further restricted. In January, the Trump administration plans to start garnishing wages for those who are behind on their student loans. It is estimated that around 5 million Americans with student loans will have their wages garnished starting this month, and millions more will be at risk in the coming months. If you have any federal student loan debt, it is imperative that you make sure your loans are current or you risk having your wages garnished.

5. Live below your means

Spending less than you make is a basic financial goal, but one well worth mentioning. 26% of Americans say they spend more than they make, and 56% of the country has at least some difficulty paying all of their bills. If you are one of the millions of Americans struggling to live below your means, it is not easy to spend less or make more, which you already know. Check out this article I recently wrote for some tips on how to get ahead financially and break the paycheck-to-paycheck cycle: “How To Build Wealth With an Average Income.”

6. Don’t forget to enjoy yourself

It’s not financially sustainable to live like a miser on ramen noodles and only spend money on the essentials. Set aside some money to spend on yourself this year. It could be as small as budgeting for a daily coffee or as big as planning your once-in-a-lifetime dream vacation. If you are saving what you know you need to be saving for retirement and are on-track elsewhere in your financial life, you owe it to yourself to splurge a bit on what you enjoy.

The beginning of the new year is a great time to make positive changes in your life, financial or otherwise, but it should come as no surprise that most New Year’s resolutions fail. To give yourself a greater chance at making changes in your own life, it’s important to set specific, realistic, and achievable goals. Ease yourself into your resolutions instead of going from 0 to 100 once the clock strikes midnight. And if you aren’t as successful as you wanted in January, there’s no need to wait until next year to try again.

In this episode, you’ll learn:

• How to win with money in 2023
• Financial habits that we think you should implement this year
• How to make the most out of your money this year
• How to know if you are setting the right goals financially 

Research and resources from this episode:

• What Are Americans’ New Years Resolutions for 2023?
• Work with us

Enjoy the Show?

• Sign up for the Financial Order of Operation (FOO) Online Course!
• Sign up for our Know Your Number Course!
• Check out our Net Worth Tool!
• Get FREE downloads full of financial advice from our Resource Page!
• Subscribe on YouTube or wherever you listen to podcasts.
• Send us your questions or share your story.

If you have any questions (or just want to say hi!), join the conversation on Facebook, Twitter, Instagram, or Tik Tok!

In this episode, you’ll learn:

• How to win with money in 2023
• Financial habits that we think you should implement this year
• How to make the most out of your money this year
• How to know if you are setting the right goals financially 

Research and resources from this episode:

• What Are Americans’ New Years Resolutions for 2023?
• Work with us

Enjoy the Show?

• Sign up for the Financial Order of Operation (FOO) Online Course!
• Sign up for our Know Your Number Course!
• Check out our Net Worth Tool!
• Get FREE downloads full of financial advice from our Resource Page!
• Subscribe on YouTube or wherever you listen to podcasts.
• Send us your questions or share your story.

If you have any questions (or just want to say hi!), join the conversation on Facebook, Twitter, Instagram, or Tik Tok!

We will never forget the year 2020.

No one could have predicted the ways this year has affected our lives. As we turn the page to a new year, we can’t help but look back and consider what we’ve learned, the mindsets we will leave behind, and the perspective we will take with us into 2021 and beyond.

Research and resources from this episode:

• Happiness by the Numbers: 8 Stats That Could Change Your Life (Happify)

Enjoy the Show?

• Sign up for the Financial Order of Operation (FOO) Online Course!
• Get FREE downloads full of financial advice from our Resource Page!
• Subscribe on YouTube or wherever you listen to podcasts.
• Send us your questions or share your story.

If you have any questions (or just want to say hi!), join the conversation on Facebook, Twitter, or Instagram!

Improving your finances is a top New Year’s resolution every year. Last year, 32% of Americans made the goal to spend less and save more. In addition to the typical “spend less and save more” resolution, we think there are several more financial New Year’s resolutions worth considering in 2021.

7. Enjoy yourself

Spend some money on yourself in 2021 (if you are saving what you should be saving for retirement). Go to your favorite restaurants, take that vacation that was canceled last year, and buy tickets to see your favorite sports team or musician. In 2020, many of us weren’t able to live normal lives, and realized for the first time how much we miss normal, everyday things – like seeing friends and family or eating at restaurants. In 2021, when it is safe to do so, take time to do everything you missed out on in 2020 if your budget allows for it.

6. Pay off high-interest debt

Almost half of all Americans carry credit card debt, and when you consider other types of high-interest debt, such as payday loans, rent-to-own, and certain student loans, that number climbs even higher. If you are carrying high-interest debt into 2021, work towards eliminating that debt as quickly as possible. Mathematically, it makes sense to pay down your debt with the highest interest rate first; however, some have found that paying off their smallest debts first gives them the psychological boost needed to pay off larger debts. No matter which method works best for you, getting rid of any high-interest debt is a great financial goal for 2021.

5. Grow your emergency fund

Nearly 70% of Americans have less than $1,000 in savings. 2020 showed us the value of having an adequate emergency fund, with the pandemic, stock market crash, and widespread job loss. Don’t let the next unexpected financial emergency catch you by surprise. If you don’t yet have an adequate emergency fund, spend 2021 building up your level of protection. For those still in the workforce, it normally makes sense to have around 3 to 6 months of expenses saved for a rainy day, depending on your job status and other sources of income. Retirees will want to keep around 18 to 36 months of expenses in cash, which becomes invaluable whenever there’s volatility in the market and you can withdraw from your cash reserves instead of your investment portfolio.

4. Update your beneficiaries

You should be regularly monitoring and updating beneficiaries as necessary, especially if you have recently experienced any major life changes. Updating beneficiaries is a quick and easy process with a great return on investment. For just 10 minutes of your time, you can potentially save hundreds of thousands or millions of dollars from going to someone you don’t want it to go to. If you have recently experienced death or divorce in the family, make sure your beneficiary information reflects your current wishes. If the information is inaccurate or outdated, retirement accounts or life insurance proceeds could end up in the hands of someone else.

3. Improve your credit score

You can be great with money without having a great credit score, but an excellent score is required to get the best rates on mortgages and auto loans. Your credit score could end up saving you tens of thousands of dollars (or more) over the long-term by helping you get better rates. So how do you improve your credit score? The most important factor is making debt payments on-time, and in full on credit cards. Some believe that carrying a credit card balance actually helps improve your credit score, but this simply isn’t true. For more information about how to improve your credit score, check out this blog post from last year: “How to Use Credit Cards Like a Pro.”

2. Eliminate your student loans

Nobody enjoys having student debt hanging over their head; unlike mortgage debt, your student loans don’t grow in value and provide shelter. Getting rid of, or at least paying down student loans is a financial resolution worth considering in 2021, but depending on your age and interest rate it may not make sense to accelerate repayment. If you are in your 20s and your loans are less than 6% interest, 5% in your 30s, or 4% in your 40s, you may be better off focusing on your Army of Dollar Bills before tackling those student loans. If you are 50 or over and have your own loans or those from a child, you should focus on paying them off as quickly as possible.

1. Give more to charity

Although the special $300 charitable deduction won’t be around next year, you should still donate more to charity if you are able. For those who are younger and might not have the extra income to give, donating your time can be just as valuable, if not more. Support the causes you believe in next year as we aim to make 2021 much better than 2020. For even more financial New Year’s resolutions you can implement in your own life, check out our latest show on YouTube below.

In this episode, you’ll learn:

• Why you need to pay attention to Capital Gains Distributions
• How Charitable Giving can help you save BIG during tax season
• Which accounts need to be maxed out by year-end
• How to avoid surprise tax bills and penalties from the IRS

Research and resource from this episode:

• Donation Value Guide (Salvation Army)
• Valuation Guide for Goodwill Donors
• Retirement Plan and IRA Required Minimum Distributions FAQs (IRS)
• The Rules on RMDs for Inherited IRA Beneficiaries (Investopedia)
• Topic No. 306 Penalty for Underpayment of Estimated Tax (IRS)

Enjoy the Show?

• Get FREE downloads full of financial advice from our Resource Page!
• Subscribe on YouTube or wherever you listen to podcasts.
• Leave us a review on Apple Podcasts.
• Send us your questions or share your story.

If you have any questions (or just want to say hi!), join the conversation on Facebook, Twitter, or Instagram!

New habits are hard to make and old habits are hard to break. How can you make new habits more easily and stick to them?

With the New Year right around the corner, many Americans are thinking about New Year’s resolutions. Breaking New Year’s resolutions has become an old joke at this point. Countless stand-up comedy routines point out the huge increase of people at the gym in January, and then the sharp drop off in February. Research shows that 60% of us make New Year’s resolutions, but only 8% are successful in keeping them.

Financial resolutions are among the most common. Last year, 53% of Americans had a resolution to save more money. We know that only 8% are successful in keeping their New Year’s resolutions, so most who resolve to save more money end up failing. How can we stick to our new habits in the coming New Year?

Consistency is the key

Behaviors are difficult to form, but once a behavior becomes a habit it is automatic. We do difficult things without thinking about it; we wake up at the same time every day and go to sleep at the same time every night (generally speaking), and we go to work without thinking about it. Good financial habits may seem out of reach if you’ve been practicing bad financial habits your entire life, but they can become just as easy and automatic as going to work or brushing your teeth.

Research shows it takes a little over two months for new behaviors to become automatic habits. That means it takes two months to change your financial life forever; two months of saving money and practicing good financial habits. After that, your good financial behaviors will become second nature.

Focus on the habits that matter

Make sure your New Year’s resolutions are obtainable, and don’t aim too high or take on too much. If you plan to make unrealistic changes in your life, you might get discouraged when you don’t have success and give up altogether. It’s better to make small, incremental changes that stick than try to change too much at once, become overwhelmed, and give up.

Hold yourself accountable

If you aren’t serious about your resolutions, you won’t be successful in keeping them. Take your resolutions seriously by holding yourself accountable; it might be a good idea to not take any “cheat days” before your habits have fully formed. Tell your friends and family about your resolutions, too. If you feel like you’re letting others down by not following through with your resolutions, they’re more likely to stick.

Reward yourself for your success

There’s a fine line between being frugal and being a miser. Make sure you don’t become the latter by rewarding yourself for your success. Once your habits have fully formed, it is okay to take cheat days or reward yourself occasionally.

More discipline is required when your habits are new and fresh, but as they get more ingrained into your behavior, a day off is harmless.

Don’t wait until New Year’s

If there’s a change you want to make in your life, there’s no need to wait until New Year’s to make it. Procrastinating until January 1st will only make you less likely to be successful in making the change you envision.

Make 2020 the year you stick to your New Year’s resolutions and accomplish your financial goals. Our most recent show, How to Stick to Your 2020 Financial Goals, is available on YouTube now.

The New Year is right around the corner, and we want to help you make it as successful as possible. How? By getting started with these seven must-read book recommendations!

Whether you want to improve your financial health or focus on self-development, these books have you covered. If you’ve ever wondered what information helped shape us into the financial experts we are today, this show provides the answers.

Before we get into these fantastic reads, we’d be remiss if we didn’t tell you that one of the best ways to take your finances to the next level in 2016 is to get the your own Money Guy on your side.

If you want Brian and Bo’s expertise for your portfolio, email brian [at] money-guy.com or bo [at] money-guy.com. We’d love to help make 2016 a financially successful one for you.

In This Episode, the Money Guys Recommend:

• The Millionaire Next Door: The Surprising Secrets of America’s Wealthy by Thomas J. Stanley and William D. Danko. This is a great book for those needing extra motivation to get excited about saving. It paints a realistic view of millionaires that makes wealth seem attainable even for the average Joe.
• The Wealthy Barber: Everyone’s Commonsense Guide to Becoming Financially Independent by David Chilton (3rd Edition). This is the perfect book to give to a high school, college graduate, or finance novice as it’s in an entertaining storybook format.
• The Truth About Money by Ric Edelman (4th Edition). Brian calls this a reference book, and Bo calls it the personal finance encyclopedia. It’s a must-have for anyone serious about improving their financial situation.
• Any Berkshire Hathaway Annual Shareholder Letter by Warren Buffett. Brian and Bo both agree that there’s tons of timeless wisdom and investment tidbits in every letter, and this archive goes back to 1977. It’s also free!
• How to Win Friends & Influence People by Dale Carnegie. This book is enormously popular for a reason. It covers six essential concepts you need for success when dealing with people and winning them over.
• Outliers: The Story of Success by Malcolm Gladwell. The interesting case studies on highly successful people make this book an insightful read.
• David and Goliath: Underdogs, Misfits, and the Art of Battling Giants by Malcolm Gladwell. This is a recent publication and critics had mixed reviews, but Brian loved it. This book argues that what we perceive as weaknesses can actually be unique strengths.

Additional Resources

• Brian’s column in U.S. News & World Report
• Thomas J. Stanley’s Blog (continued by Sarah, his daughter)

Go Beyond Common Sense With the Money-Guys

As we close out the end of the year, we couldn’t be more thankful to our Money Guy family. Without you, this show wouldn’t be as successful as it is today.

We appreciate all the feedback we get, and we read every single email you send us. Let us know what you want to hear about in 2016 by emailing brian [at] money-guy.com or bo [at] money-guy.com.

And don’t forget to connect with us on Twitter @MoneyGuyPodcast, or check us out on Facebook. We’d love to have you share your book recommendations with us on social media, too! We’d love to hear what you think we missed.

Can’t wait to get reading and want more amazing financial content? Join our community! You’ll get access to 15 of our most recent shows, and as a bonus, our podcasts will be delivered straight to your inbox so you can be the first to listen to them.

Thanksgiving and Black Friday are just around the corner, and it’s that time of the year when Brian begins to reflect on what happened in 2015. In this episode, your Money Guys cover a few tips on Black Friday shopping to kick things off before revealing 7 steps you can take to have a successful 2016.

This is a great episode for anyone joining Brian in feeling nostalgic over how this year has played out. If you’ve found you’re not happy with where you are and want to push past boundaries in 2016, this episode will leave you feeling inspired to take action.

Before we forget, we also want to give a huge thank you to the entire Money Guy family — and if you’re tuning into the show, that means you! 2015 was Brian’s most successful year in his entire professional career, and we feel we owe that largely to our Money Guy listeners.

Last year, Brian asked members of the Money Guy family if they would be interested in the fee-only financial planning services his firm offers, and the response was amazing. Brian and Bo are still accepting clients, so if you need help taking your finances to the next level and want to work one-on-one, be sure to email brian [at] money-guy.com or bo [at] money-guy.com for more information.

Ready to get motivated to conquer your goals?

In This Episode, You’ll Learn:

• Why you don’t need to “go big or go home” when it comes to Black Friday
• How you can get good deals on items that are normally price-fixed on Black Friday
• The importance of having a vision plan for your future
• Why you need to write down your goals to make them more concrete
• The critical question you need to ask yourself to figure out what drives your desire
• How passion and purpose trump trials and talent
• Why you should plan for the worst and create multiple plans in case one fails (even if you’re an optimist)
• How to come to terms with the fact that you’re most likely not going to experience overnight success, and why that’s a good thing
• The value in taking the road less traveled and getting out of your comfort zone
• Why you need to measure your progress throughout the year to see if you’re headed in the right direction
• Who you should reach out to if you want to experience the most success

Resources Mentioned:

• Ebates
• RetailMeNot
• TGIBF App (Apple and Android)
• 3 Ways to Make Your Money Go Farther

Tune In and Go Beyond Common Sense with the Money Guys

We wouldn’t be where we are today without the support of our wonderful listeners. You all make this show worth doing every time, and sometimes we have a hard time believing we’ve been doing it for so long! Thank you for being part of the Money Guy family.

We love hearing from you, so if you have any feedback or comments on the show, be sure to email brian [at] money-guy.com or bo [at] money-guy.com! You can also follow us on Facebook or Twitter @MoneyGuyPodcast.

Did you love the tips we shared on how to make 2016 your best year yet? Then join our community, where you’ll get access to 15 of our most recent shows! You’ll also receive podcasts straight to your inbox so you never have to worry about missing one again.

During this season, it’s only natural to start thinking of all the things you want to work on and accomplish when the calendar rolls over next week to a new year.  If you’re a Money-Guy Show listener, you know how to create a vision plan to do big things in 2015.

But you may still need a bit of guidance to endure you achieve success and meet all the goals you have for the new-year. While most New Year’s resolutions are set with the best of intentions, most of them are broken – or completely forgotten – by February.

If you want to make 2015 different, you need to make sure your goals are SMART.

What Are SMART Goals?

Here’s what we mean by SMART goals:

• Specific
• Measurable
• Actionable
• Realistic
• Timely

SMART goals enable you to create an intention and a plan of action to use as your road map to success. Using these guidelines, you can set resolutions you’ll actually remember and achieve.

Let’s take a closer look at what each of these elements means.

Making Goals Specific

Your goals need to be specific and detailed. There’s no question about what you want to accomplish — and there’s no question about when you actually accomplished it, either.

This means that your goal isn’t intangible or fluffy. You can clearly describe and understand it. If you can’t easily explain your goal to someone else, you may need to work on it until it’s more specific and tangible.

Struggling to get specific? Make your goal answer the “W” questions: who, what, where, when, and why. This should provide more structure and clarity.

Setting a Goal You Can Measure

You want to be able to measure your goal so you can track your progress and understand where you’re at, how far you’ve come, and what you still need to do in order to reach success.

And again, you want to be able to know when you’ve actually accomplished the goal. If you can’t measure your progress, how will you know if you’ve actually succeeded?

For example, you can’t measure a goal that says “build an emergency fund.” But you can measure a goal that says “save $5,000 in an emergency fund by December 2015.”

Creating an Action Plan around Your Goal

An actionable goal will be, well, something you can take action on. You’ll want to be able to map out a series of steps you need to take in order to achieve it.

Put pen to paper and write out what you need to do. Knowing what you should be working on to achieve your goal will help keep you focused and moving forward.

Going After Something Realistic

One of the most important elements of SMART goals is the “R” — setting a goal that’s realistic. It should be something that you can reasonably achieve.

That doesn’t mean you shouldn’t stretch yourself or push your limits. You should push yourself to go above and beyond.

But it’s unreasonable to set a goal to “become a multi-millionaire by June” if you’re dealing with credit card debt today or “write the next great American novel next weekend” if you haven’t written a word since grade school.

There’s no reason you can’t write the next great American novel, but it will probably take you more than a few days (and quite a bit of practice). You can become a multi-millionaire, too, but first you need to repay your debt (at the very least).

Make sure your goals are big and challenging, but not unreasonable and verging on impossible.

Establishing a Time Line

Finally, SMART goals all have timelines — and deadlines. Establish when you’ll accomplish your goal by (or when you want to).

That may feel like too much pressure, but putting a due date on your goal means creating a sense of urgency. It also holds you accountable.

SMART goals can help you stay focused and on the right path to success. When you go to set resolutions for 2015, ensure they’re specific, measurable, actionable, realistic, and timely. Stay SMART in the New Year!

What financial goals will you be working toward in 2015?