It’s trite but true: With the beginning of a new year, our thoughts turn to a fresh start, and ways to improve our lives, our health, and our habits. In other words, the perfect time to start rightsizing your finances.
I’m a big proponent of rightsizing personal finances to match one’s goals and desired lifestyle, with the ultimate aim of a seamless transition to retirement.
That’s right: retirement.
Whether you’re a recent college grad or a card-carrying member of AARP, rightsizing your finances is about making changes now that will translate into a financially stable retirement period—even a retirement that lasts for decades.
But let’s not get too far ahead of ourselves. Instead, let’s focus on starting the new year right, with some easily attainable goals and good habits for rightsizing expenses:
Lower the ceiling on housing costs. Housing plays a huge part in my vision of rightsizing your life. But for now, I’ll just say that if your current home suits your needs and you plan to stay there for at least several years, this may be a wonderful time to refinance. You can take advantage of today’s low interest rates to save on your monthly payments, or shorten the time you’ll be paying your mortgage.