Don’t you just love a good New Year’s resolution? The clock strikes midnight, and it’s the opportunity for a whole new you. A surge in investment for whatever kind of wellness you’re seeking. But alas, we all know these great intentions don’t last. There’s even a new term called “Quitter’s Day” reserved for the second Friday in January.
With the death of our resolutions long out of sight in our rear-view mirror, must we wait a whole other year to become the best version of ourselves? Fear not. The best kind of reset is upon us—tax season. Yes, you read that correctly.
Scott Doyle, Founder and Financial Advisor at Horicon Wealth Management, feels people can look forward to tax season as a time not only to review the previous year’s finances, but also to use that information to tweak strategies for the future. Scott explains, “It’s about using tax season as a time to look at the most comprehensive document people have in their lives. And it’s your own fingerprint.”
The tax return isn’t just paperwork; it’s a snapshot of your life. It reflects income, investments, health, and family structure, all in one place. Scott elaborates, “It’s understanding your health. Did you have a kid this year, or did you make a big purchase like a home? Have your family dynamics changed? How much money did you make, or did you sell anything substantial? It’s more of an opportunity to understand how you contribute to savings. And most importantly, it’s a time to see if your plan evolved with your life. Are you honoring your values and goals, and how that’s changed over time?”
Because tax season brings so many moving pieces together, it can serve as a natural moment to step back, not just to file, but to reflect and adjust. A great place to start is your spending. Scott recommends, “Always know your spend. For my own life, I use the EveryDollar App. A lot of people use RocketMoney. It’s all about tracking what you spend. It’s so simple, but it’s hard.” Taking just a few months to establish a baseline for your spending can make all the difference.
“Old decisions quietly stay in place while life moves on,” Scott says. The need for balance is important. “Don’t think so far ahead and max out your 401K that a house or car seems far out of reach. Sometimes over-saving isn’t right either. It’s not right for your finances or mental health.”
Your finances are part of an ecosystem. Understanding the parts that are intertwined helps make the ecosystem healthy, because they all affect one another. A small change in one area quietly affects another.
And tax season is the perfect time to bring all of this together. “You’re already gathering statements. You’re already visiting accounts that you may not think of for the rest of the year, or even years down the road. It’s a natural moment as you’re gathering these statements for your accountant or doing them yourself.”
This all culminates in answering the most important question: Does my financial plan right now match how my life looks today?
Financial decisions are rarely made in isolation, regardless of how much you earn. Taxes, investments, estate considerations, and family planning are all interconnected, even when they’re handled by different professionals at different times. “Don’t be afraid to reach out and ask for guidance. What you do once during the year, or even in your life, a financial planner does countless times during the year. Sometimes it’s best just to be pointed in the right direction.”
https://horiconwealthmgmt.com/
Tax season brings so many moving pieces together, it can serve as a natural moment to step back, not just to file, but to reflect and adjust. A great place to start is your spending.