Sometimes turning of a page on your calendar becomes a catalyst for reinforcement of your goals. A New Year is often a time of new resolutions. So take this time before the New Year to ensure your financial slate is clean so you can focus on things that lead to your sense of fulfillment.

Maintain Sufficient Emergency Cash

This is your rainy day cash and no standard amount applies to everyone. It depends on many factors – how you spend, your dependents, your job, sources of income, your risk profile and current economy; to name a few. Roughly have six-to-nine months of cash needed to maintain your current life-style.

Manage Your Cash Flow

Easy it sounds, but often is most difficult. Managing cash flow involves managing your style of living. Important thing is to recognize that your cash flows control your expenses. Not the other way round. Contain your expenses within your income.

Manage Your Debt

Equally important to managing cash-flow is managing debt – both short term and long term. Credit card, car loans, the short term debts should not be more than your capacity to pay them off at any time. If these are high, try to pay off the high interest debt first and consolidate remaining ones at lower rate.

Mortgage is a long-term debt and helps build up your credit history. But even with mortgage, do not take more than you can handle.

Protect Your Assets

Protect everything that is precious. Have adequate life insurance. Ensure same for your spouse or partner. A non-working partner can still need life-insurance.

In addition, have adequate auto and home insurance. Consider an umbrella policy on top of home and auto insurances. Finally, have proper health care and long-term care insurances.

Have Clear Goals

It sounds fuzzy to talk of goals but write them down and monitor them. This is a very effective way of managing your finances. Clear goals are a motivation to save. Regular savings is a motivation to invest appropriately. And this leads to fulfilled goals. The joy and fun in achieving one’s goals are priceless.

Plan Your Estate

Finally, plan your estate. Have a living trust or a will. Do not forget to appoint a Power of Attorney for your health care. Finally, ensure all your beneficiary designations are correct and current.

— Lavina Nagar

— Lavina is a financial planner and founder of Maya Advisors, Inc. She can be reached on 650.704.3074 or

Disclaimer: This article is for information-purposes only, and may not apply to your unique situation. Nothing in this should be interpreted to be a recommendation to anyone to purchase, sell or hold any security or product. It does not replace a lawyer, accountant, financial planner, or other professional advice.