Happy New Year Resolutions

New Year Resolutions?

As we move from year to year, many people make New Year’s resolutions, and they also make financial plans as taxes must be filed shortly after January 1st. Personally, I like to make plans, but not set myself up with New Year’s resolutions that I may not keep. This only makes me feel guilty. I do make goals, but I don't beat myself up when the are not met.

I decided last year to eat healthier this year and lose some weight, which I have accomplished. The result has been good as I have more energy and I was able to stop taking two medications. This was not a New Year goal as I started in the summer.

I also try to spend as much time with my family members as I can. Three friends of mine have died this past year, so I have decided that each day is precious. Make each day count is my new motto.

Protect Your Finances

We are making some decisions about our finances also. My husband had a stroke at age 59, which meant he could not work until age 65 as he had planned. We have learned to live on a budget, yet I do not feel deprived at all. We still try to make good decisions and look ahead to protect our future. This is a time that many people may make decisions concerning finances.

As there is so much uncertainty due to the fiscal cliff and what one might owe in taxes, it makes sense to make some decisions to protect your financial situation. Regardless of what the government does, many of us are already living on a strict budget. Since there is a good probability that taxes will increase, it might be wise to divert 401K money to a Roth IRA. Taxes will be higher down the road so this is a savings in the long term. Capital gains tax is scheduled.

Dollars

Source

Financial Considerations

Additionally, the new 1.45% Medicare payroll tax increase also takes effect next year. Beginning in 2013, a Medicare tax may also be owed on net investment income. Taking a good look at your retirement program is probably advisable at this time.

Another thing that can help for people who write off deductions would be to make the January 1st house payment in December in order to write-off the interest in this tax year. Pay off any medical bills this year if you write off your medical expenses, if at all possible.

Is it worth moving to live in a state with lower taxes? That is certainly a question that each individual must consider. California is the most expensive state to live, and many people are moving away. They are trying to pass legislation that will triple the vehicle license fee required to register your cars. Some states have no state income tax, such as Texas and Florida, which make them a popular place to live.

Good News for Vets

There is some good news for military personnel returning home. A program called “the returning heroes and wounded warriors work opportunity tax credit” gives a business that hires a vet a credit up to $9,600. The amount is based on the amount of time the vet has been unemployed.

In Conclusion

The facts are that many people are unemployed or underemployed. Prices are rising on almost everything but typically income is not. Spending your money wisely just makes sense. There is so much uncertainty for the financial future of Americans that it is wise to budget and plan for the year. Give to those less fortunate when you can and sometimes giving your time is the most important thing. Live each day to the fullest and enjoy your life!

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Comments 35 comments

billybuc profile image

billybuc 3 years ago from Olympia, WA

Useful information, Pamela, and certainly worth keeping in mind......check your hub....your conclusion is after the comments section.


breakfastpop profile image

breakfastpop 3 years ago

Thanks for your very wise advice, Pamela.


Pamela99 profile image

Pamela99 3 years ago from United States Author

Billy, Thank for the comments and the information. I never had that happen before.


Pamela99 profile image

Pamela99 3 years ago from United States Author

POP, I appreciate the comments.


lrc7815 profile image

lrc7815 3 years ago from Central Virginia

Pamela, this is great advice for all of us. I can appreciate your situation and need to change. My Mom had a stroke 13 years ago. We had to make similar changes in their household budge. I was laid off 9 months ago and at 57 years old, haven't found a job yet. I've had to tighten things down. Sure, it would be nice if we didn't have to but it is what it is and an be done without much pain. I think your suggestions are very smart for all of us.


kashmir56 profile image

kashmir56 3 years ago from Massachusetts

Great well written hub with all great and useful information, tips and advice . Well done !

Vote up and more !!!


Pamela99 profile image

Pamela99 3 years ago from United States Author

Linda, I hope you find a job soon. I know that it is a hard time right now. Thank you so much for your comments.


Pamela99 profile image

Pamela99 3 years ago from United States Author

Kashmir, I appreciate your comments. very much.


always exploring profile image

always exploring 3 years ago from Southern Illinois

I loved all of your suggestions I esp. like a tax break given to ones hiring a vet.Times are so uncertain. CD'S are so low. That's what i mostly live on. Thank you for a very helpful hub..


dailytop10 profile image

dailytop10 3 years ago from Davao City

I really hope 2013 will be a better year.Thank you for sharing this very informative hub.


Mhatter99 profile image

Mhatter99 3 years ago from San Francisco

Thank you for this info. Health is my biggest challenge for 2013


Pamela99 profile image

Pamela99 3 years ago from United States Author

Ruby, I know about low interest rates. They are a;; low now. Thanks for your comments.


Pamela99 profile image

Pamela99 3 years ago from United States Author

dailytop, I hope 2013 is better also. I appreciate your comments.


Pamela99 profile image

Pamela99 3 years ago from United States Author

MHatter, I hope your health improves this year. I have that challenge also and write off medical expenses every year unfortunately. I hope that don't stop that deduction. Thanks so much for your comments.


FullOfLoveSites profile image

FullOfLoveSites 3 years ago from United States

Yes, I agree... live each day to the fullest of your life, no matter how hard it can be. We will all get through it! Thanks for sharing and advanced happy new year to you! :)


fpherj48 profile image

fpherj48 3 years ago from Beautiful Upstate New York

Pam....Thank you for this well-written hub of a serious nature. We do need to be on our toes, a lot more as we age...and remain vigilant. You definitely know what you speak of. Your suggestions are all well-received. I wish you a Happy New Year, Pam, filled with all the very best of life's gifts!!....UP+++


drbj profile image

drbj 3 years ago from south Florida

Thank you for your excellent advice, Pamela. One of your wisest suggestions is at the end of your hub, to wit: 'Live each day to the fullest and enjoy your life!' I heartily second the motion!


Pamela99 profile image

Pamela99 3 years ago from United States Author

FulloLoveSites, Thank you so much for your comments and Happy New Year to you also.


Pamela99 profile image

Pamela99 3 years ago from United States Author

Paula, I always appreciate your comments. I wish you a Happy New Year and all of life's gifts as well.


Pamela99 profile image

Pamela99 3 years ago from United States Author

drbj, I think living with that attitude sure makes life more fun and it makes the tough times a bit easier too. Thanks so much for your comments.


pstraubie48 profile image

pstraubie48 3 years ago from sunny Florida

Each day is precious for sure---living each day to the fullest and enjoying life are ways to live. Too often we miss today worrying about tomorrow or looking back at yesterday. Things happened years ago that taught me to live the mantra---do not miss today---every day is a gift.

It sounds as though you learned to do both of those things. Learning to live within a new financial framework can be done---I had to retire early due to the illness of a very close family member; it has taken some adjustment but it works. My family is more important to me than anything for sure.

I do not make resolutions any longer as I am always so disappointed in myself when I do not measure up even if I set up resolutions I think I can reach. So I have some plans for the new year but I am going to do them one week at a time and see if I can reach them that way.

Thank you for sharing this with us...and Happy New wishes .

Sending Angels to you...:) ps


Pamela99 profile image

Pamela99 3 years ago from United States Author

pstraubie, It sounds like we have about the same attitude concerning life as I fully agree with you. Thank you so much for your comments and I love the angels. Happy New Year to you and I am sending you angels too.


Sunshine625 profile image

Sunshine625 3 years ago from Orlando, FL

Make each day count. I like it! I like your hub. Happy New Year Pam!!


Pamela99 profile image

Pamela99 3 years ago from United States Author

Sunshine, It is a good way to live. Thank you for your comments.


teaches12345 profile image

teaches12345 3 years ago

Great advice, Pamela. I will keep this top of mind in 2013.


Pamela99 profile image

Pamela99 3 years ago from United States Author

Dianne, Thanks so much for your comments. Have a wonderful 2013 year!


Denise Handlon profile image

Denise Handlon 3 years ago from North Carolina

Excellent advice here, Pamela. Thanks for sharing. Best to you in the New Year. :)


Pamela99 profile image

Pamela99 3 years ago from United States Author

Denise, Thanks so much for your comments and I hope you have a wonderful 2013 year also.


Rosemay50 profile image

Rosemay50 3 years ago from Hawkes Bay - NewZealand

Excellent advice for everyone, we all need to watch our pennies and plan for future expenses. And yes live every day to its fullest, the best advice

All the best for 2013


Pamela99 profile image

Pamela99 3 years ago from United States Author

Rosemary, Thank you so much for your comments. I'm glad you agree with my thoughts. I wish you a wonderful 2013 also.


kellymom1970 profile image

kellymom1970 3 years ago

Hi Pamela, it's kellymom. I just friended you on fb my real name Tracy smith, I go by kellymom on here becauce my mom is Tracy too. I would love to be your Fb friend too.


carolina muscle profile image

carolina muscle 3 years ago from Charlotte, North Carolina

Carpe Diem -- Make Every Day Count !!!

Yes, indeed-- you are so right.

Great post, Pamela, as always!


Pamela99 profile image

Pamela99 3 years ago from United States Author

Chris, My new motto is "Make everyday count." Thanks so much for your comments.


Petra Vlah profile image

Petra Vlah 3 years ago from Los Angeles

You are so right Pamela to have decided to treasure each and everyday since we don't know what tomorrow will bring. Taking some precautions for the future is also wise and your advise is great. Thank you


Pamela99 profile image

Pamela99 3 years ago from United States Author

Petra, I guess you know that as well as anyone. Thank you so much for your comments.

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