10 Key Financial To-Do's
January 2005 - eNewsletter

1. Take a planning weekend. Here are some outlines to help you set a planning weekend for singles(pdf) and married(pdf) couples.

2. Commit to studying finances from a Biblical perspective. If you have never been through a Crown Ministries Small Group Bible study, attended a Crown seminar or read through one of the great books that look at personal finance from a Biblical perspective. Here are a few:

For more information on getting involved in a Crown small group contact, or attending a Crown Financial seminar, visit www.crown.org

3. Establish a spending plan for the year. Do you have a plan for how you will spend your money this year? If not, take the time to take this step realizing that it will never be perfect, and it is a process. Our previous September, November and December newsletters address this issue.

4. Adjust your tax withholding. Have you been getting big refunds or writing big checks to the IRS? If so then you need to adjust your tax withholding. Click here to learn how, or consult with your tax professional.

5. Make sure you are not in a giving rut. Is giving an exciting process or has it become another bill that you could easily set up as a bank draft because you never think about it? Our giving should be regular but not stale. Take time this year to consider how much you give and where you give to see if some things need to change. We highly recommend Randy Alcorn's book the Treasure Principal.

6. Aggressively pay down non-mortgage debt with interest rates higher than 6%. If you have consumer debt balances that are just lingering out there, consider making additional payments or adding to your monthly payment.

7. Set up a plan to save for the major expenses you will incur within the next five years. If you are anticipating an auto purchase, home remodel, home maintenance, etc., or some other major expense, calculate how much you need to start saving now so you can minimize or avoid debt when the expense comes due.

8. Commit to starting or increasing your retirement plan contributions. If you have a workplace retirement plan, start there - especially if there is an employer match. If you do not have a workplace retirement plan or you need to save more, consider starting a traditional or Roth IRA. Start small if you have to so that you can establish the habit of saving.
If you want to see how much (or little) your check will be impacted by contributing to your 401(k) here is a tool that may be a helpful guide.

9. Determine how much you need to be saving for the long term, whether it's for retirement, education or another goal. Whether it's an online calculator or a Financial Advisor, don't “stick your head in the sand”.

10. Make sure you have adequate life insurance coverage. If you have a family that is dependent on your income, you need to have insurance coverage should something happen to you. A rule of thumb for the amount of coverage is 10x your income and term policies make sense for most people. A good place to start is www.quotesmith.com.

The Bonus To-Do - Get a Will! Statistics say that over 70% of individuals do not have a will. If you die without a will, the courts determine who gets your possessions and guardianship over dependents regardless of your wishes.

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