4 Things to Consider Now to Make The Most of Your Money Tomorrow

A new year is fast approaching. And maybe you have a little extra vacation time to burn before the end of the year. Make that time productive and think about your money and finances right now.

Don’t wait for those New Year’s resolutions. Start improving your financial habits today so you hit the New Year with some momentum.

Here are 4 things to consider.

Top Off Your Emergency Fund

No one knows when an unanticipated expense or a surprise job loss might happen. It pays to be prepared. So, make sure you have an adequate emergency fund.

Most financial experts recommend having 3-6 months of living expenses on hand. But, don’t let that big number scare you. Start small and add a little every month.

Also, make sure you put that money in a low-risk account. Gains from the stock market may seem tempting, but resist the urge and put your emergency cash in a savings account or money market fund. You will make a little interest and have no virtually no risk of loss.

Update Your Resume

Make sure your resume is up to date. First of all, there is no use waiting for an unexpected job loss to dust off this important document.

Furthermore, maybe an unexpected opportunity will present itself. Be ready and get that resume in the hands of the hiring manager right away.

Finally, a resume is not just a document to put in a file. Make sure your online presence is up to date too. So, put your best foot forward on professional networking sites like LinkedIn.

Double-check your insurance coverage

Is your family dependent on the income of a sole breadwinner? Then make sure to have adequate life insurance in place.

Term life insurance is very affordable. So, take one more stress factor out of the equation when a loved one passes away. Term life insurance can provide financial protection at just such a time.

Make a good investment

Now you have your emergency fund topped off. Your resume is ready to go. And, you have life insurance in place to protect your family.

Do you have a few dollars left over? Then make a good investment.

Dividend-paying stocks are an excellent choice. The stocks of solid dividend-paying companies have several advantages

First of all, you receive cash in the form of dividends each quarter. Furthermore, solid dividend-paying companies increase their dividends each year. Finally, a recurring dividend provides a level of underlying support to a company’s stock price.

Summary

Don’t wait until the New Year to improve your financial situation. Consider these four actions today:

Top off your emergency fund

Update your resume

Have adequate life insurance in place

Make a good investment

Tom Edwards is a life long investor and former finance executive. He is currently the editor for Dividends Diversify, a personal finance, and investment website.