Don't limit seasonal cleaning to your closets and cupboards-it's time to
get your finances in order too! From reviewing your retirement plan to updating
your budget, here are some tips to help you freshen up your finances.
1.
Check your creditIt's important to check your credit once a year. You need to make sure there aren't any errors dragging down your credit score. Free reports are available annually from each of the major credit bureaus at annualcreditreport.com. It's free, takes 10 minutes, and will give you peace of mind.
2.
Update your budget
If you don't have a budget, make one. It will make managing your less overwhelming. If you already have a budget, make sure you update it once a year. Add any pay increases (or decreases) and adjust accordingly. Have a little excess money each month? Instead of blowing it on a weekend in New York City or a new dress you don't need, squirrel it away in savings.
If you don't have a budget, make one. It will make managing your less overwhelming. If you already have a budget, make sure you update it once a year. Add any pay increases (or decreases) and adjust accordingly. Have a little excess money each month? Instead of blowing it on a weekend in New York City or a new dress you don't need, squirrel it away in savings.
3.
Make a plan to cut your debt
Think of debt as clutter you need to put away. If you're carrying sizeable debts on your credit cards, it's time to make a plan to pay them off. Prioritize based on interest rate and balance and choose one to focus on this next year. This will keep your goal to reduce debt realistic and attainable. If you're expecting a tax refund, think about putting towards your biggest balance.
Think of debt as clutter you need to put away. If you're carrying sizeable debts on your credit cards, it's time to make a plan to pay them off. Prioritize based on interest rate and balance and choose one to focus on this next year. This will keep your goal to reduce debt realistic and attainable. If you're expecting a tax refund, think about putting towards your biggest balance.
4.
Review your retirement plan
When was the last time you peeked at your 401(k) or IRA? It's time to take a minute and review your investment strategy and make sure it still matches up with your retirement goals. If need be, chat with a retirement advisor about adjusting your investments to match your current risk tolerance.
When was the last time you peeked at your 401(k) or IRA? It's time to take a minute and review your investment strategy and make sure it still matches up with your retirement goals. If need be, chat with a retirement advisor about adjusting your investments to match your current risk tolerance.
5.
Shred old documents
It can be hard to throw away or shred financial statements, but trust us; you don't need your bank statements from 2003. Outside of tax returns, which you should keep for five years as well as the supporting documentation and receipts, everything else can be thrown away after two years. Make sure you shred anything with personal info; just throwing it away can invite identity theft.
It can be hard to throw away or shred financial statements, but trust us; you don't need your bank statements from 2003. Outside of tax returns, which you should keep for five years as well as the supporting documentation and receipts, everything else can be thrown away after two years. Make sure you shred anything with personal info; just throwing it away can invite identity theft.
6. Invest in Life Insurance
Think about the consequences if you die and have no assets. What about your family, particularly your children? Is college in their future? Are there provisions to help them get a decent start in life? How will your family make ends meet? Check your financial portfolio to take stock of your assets. Purchase a term life insurance policy to protect your family. The cost is far less than you imagine. You may be able to purchase thousands of dollars of insurance for something like $15 monthly. Check the Internet for possibilities and take action.
7.
Make a will
If
you don't have one already, there's no better time to make a will. If you die
and leave no will, your assets may not be distributed as you'd planned and your
estate will lose money trying to divvy it all out. If you already have a will,
this is a good time to review it and make any adjustments based on new income
or investments.
8. Cast your vote
Another way to ensure your financial future is to make sure you exercise your right to vote. Consider the issues, chose your candidate, and cast your vote.
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