How did we get to the end of one decade and the start of the next?  It does not seem possible that it has been ten years since the turn of the century.   Newspapers, magazines, and the internet are filled with stories listing the biggest changes in the last ten years.  In 1999 we hadn’t heard of Facebook or I-pods or begun Googling each other.  The economy was flying high, tanked, recovered, and crashed again.  What a decade!

The start of a new decade gives us the opportunity to reflect on where we are and where we intend to go.  One of the most difficult things for human beings to do is to change.  We dread it, avoid it, hide from it, but change is inevitable and time keeps moving.

Let’s take advantage of our human nature.   Make a New Year’s resolution, but make it small.  So small that it is almost impossible not to succeed.  People ask me when they should start saving for retirement or for their child’s education.  How about now?  When the baby is born, put those early gifts into an account;  add to it with birthday gifts.  Encourage grandparents to consider savings bonds.  Take advantage of tax deferral and open a 529 or Coverdell savings plan.  Have an automatic payment made every month out of your checking account.  Soon saving for education will be a habit for you and your child.

Don’t have an emergency fund?  Save your coins in a jar on your dresser.  When it is full open a small account.  Every month those coins go in that account.  Put those little windfalls like rebate checks and tax refunds into that account, too.  Before you know it you will be in the habit of saving.

Do you have a 401-k plan at work?  Sign up, even if you can only put in 1% of your income.  If you get a raise, bump up your contribution.  Depending on your income level and tax status, you might be able to fund a traditional or Roth IRA.  If you are over 50, the government allows you to put even more away.  Let human nature work for you and set up an automatic payment.

Take one little step this January, head down the path and hopefully in December 2019, you will be saying:  “Where did the decade go?  I may be 10 years older, but look at what 10 years of saving can do!”

Have a very Happy, Healthy, and Prosperous New Year!

Jean M. Diamond CPA

847-441-3391