The wealthiest, most successful people think big and set huge expectations.
But that doesn’t mean they overlook the small stuff.
Alexa von Tobel, founder and CEO of LearnVest, shared one of these “smaller” financial goals for 2016: Adjust your personal finances to reflect life changes.
“2015 brought a ton of new (and incredible!) changes to my family,” she told Business Insider. “I moved into a new home this past fall and, most notably, I had my first child, Toby, in March.”
A new home and family means an altered financial plan, she says:
“For 2016, my husband and I will be focused on making sure all of our financial plans and documents — such as life, health, and homeowner’s insurance, financial plans for childcare, and our will — are up-to-date to reflect all of these life changes.”
Big life changes call for equally significant financial adjustments.
If you become an empty nester, that’s a great time to start catching up on savings and amp up your contributions to retirement accounts. If you’re expecting a baby, you may want to consider contributing toward a 529 savings plan, which allows you to funnel up to $14,000 a year, per parent, into a tax-deferred account.
Or, if you decide to retire early, you’ll need to readjust your time horizon and the amount of risk you choose to take in your investment portfolio.
Major changes will inevitably alter the way you manage your money and call for a financial tune-up — but even if nothing dramatic changed in your life over the past year, it’s still smart to revisit your budget, investments, and general financial plan regularly.