2013 is here and there is no better time to assess your money management plan for the new year. Don’t let a sluggish economy and political uncertainty with the fiscal cliff dampen your financial outlook.

Diligence is essential in money management. Proverbs 21:5 states, “The plans of the diligent lead to profit as surely as haste leads to poverty.” (NIV84). 

Now is the time for you to be diligent and do an assessment of your financial affairs by asking yourself these 9 questions:

1. Do you have a written monthly cash-flow plan in place? A written budget is the key to a successful financial plan. Without it, you have no idea where your money is going, this can lead to overspending.
2. Is your Will or Estate plan current? Children get older, grandparents get older, and relationships change. Who will take care of your children if you die unexpectedly? Who do you want your stuff to go to when you kick the bucket?”
3. If you have debt, do you have a plan in place to eliminate or cut your debt load? Debt is the primary wealth killer. It takes money away from your most important wealth building tool; your income.
4. How will you deal with higher taxes in 2013? If you foresee more money to be taken out of your paycheck, you need to account for it in your monthly budget.
5. If you were to lose your job, do you have three to six months of expenses saved (emergency fund) to get you by. An emergency fund is a form of insurance, it turns a crisis into an inconvenience.
6. Are you on track for funding your children’s current or future college expenses?
7. Is giving part of your monthly cash-flow plan? Give generously to him and do so without a grudging heart; then because of this the Lord your God will bless you in all your work and in everything you put your hand to.” Deuteronomy 15:10
8. Have you assessed your current insurance policies? Do you have adequate coverage or do you need to make some changes? Deductibles, liability coverage amounts, premiums, etc.
9. What are your financial goals for 2013? I have found that when my wife and I write down our financial goals, we are ten times more likely to accomplish them. Make sure they are SMART goals (Specific, Measurable, Attainable, Relevent, Timely). The late Zig Ziglar said, “If you aim at nothing, you will hit it every time.”

If you can come up with answers relatively quick, than you have a good idea of your financial status. That may or may not be a good thing depending on how you answered these questions.

If you feel like you’re in the dark, then take action to get your financial house in order. Get on a plan.

Question: Do you feel confident in your Money Management Plan for 2013? If not, are you willing to make a committment to getting on the right track?