“The two most powerful warriors are patience and time.”
This quote by Leo Tolstoy reminds people to view time as a precious commodity and treat it as an asset to be well-managed. When I think about this quote, I think about financial education and the patience and time it takes to plan, budget and invest. Whether earning, saving, spending, donating, budgeting or planning, we constantly have to think about money.
The holiday season is a good time to reflect on financial year-end goals and set goals that might take patience and time. Here are some actions to consider before the end of the year, as well as items to remain patient with through 2025:
- Establishing automatic, recurring contributions can help you reach your savings goals faster by breaking down your goals into individual steps and building the habit of saving regularly without much effort. Planning how much and how often you’d like to save, you can set up recurring contributions bi-weekly, monthly or quarterly — whatever works best for you!
- Budgeting can make a difference in your spending habits. Review where your money is going and evaluate where you may be overspending or can scale back. This will help you stay in control of how your dollars are spent. Looking back at 2024, how can you adjust your budget for 2025?
- Millions of dollars are turned over each year after financial institutions and businesses lose contact with the owner. The State Treasurer’s Office safeguards these assets through the Great Iowa Treasure Hunt until they are reunited with their rightful owner. Common examples of unclaimed property include dormant checking and savings accounts, uncashed checks, utility refunds, lost stocks, life insurance policies and contents from abandoned safe deposit boxes. Make it a habit to check every year if you, a family member, a business or a service organization have anything to claim.
- Updating contact information and delivery preferences on your financial accounts to ensure tax documents are sent where and how you want them and that you don’t miss out on potential deductions.
- When you are able, maximize your tax deductions. Common deductions may include contributions to retirement savings accounts, education savings plans such as ISave 529, health savings accounts or contributions to an ABLE account like IAble.
- Signing up for credit reports and alerts. You can get a free credit report annually by going to AnnualCreditReport.com. Iowans can report scams to the Federal Trade Commission at ftc.gov/complaint or through the Iowa Attorney General’s office at IowaAttorneyGeneral.gov. Actively monitor your account balances often and check all withdrawals to ensure transactions were completed with your approval.
- Committing to continuous learning about personal finance is essential for making informed decisions. Engaging in courses, reading books or attending workshops can deepen your understanding of financial principles and strategies. By staying informed, you can adapt to changing financial situations and make choices that align with your goals.
- Having an emergency savings account is crucial for financial stability and peace of mind. Life is unpredictable, and unexpected expenses can arise anytime — medical emergencies, car repairs or job loss. An emergency fund acts as a safety net, providing you with a sense of security, allowing you to handle these situations without relying on credit cards or loans, which can add additional fees and interest to your payment. If you already have an emergency savings account set up, assess it annually so the amount in your savings is still enough to cover your expenses in case of unexpected events.
Remember, patience and time are the most powerful warriors in financial planning. Your efforts will pay off, so stay encouraged and motivated.
Roby Smith serves as Iowa’s state treasurer. He was elected in November 2022.
