There’s no time like the present to clean up your personal finances. Evaluating your current situation is just as important as preparing for long-term goals – your future self will thank you! Consider these steps when cleaning up your finances this season:
- Get Organized! You owe it to yourself to take a financial health day Tackling this step may involve contacting banks and/or credit card companies which may only be available for phone calls during normal working hours. When organizing financial documents, begin by running your credit report to ensure your spending lines up with other statements. It’s important to pull your report every three months by using resources such as annualcreditreport.com, Credit Karma, and Credit Sesame. Next, review your bank and credit card statements over the last three months with a fine-tooth comb to ensure your money has been going where you expected. Also, look closely at potential duplicate or unnecessary charges that may be refunded including ATM and billing fees, for example. Consider printing or scanning and saving your statements in a safe, secure place and shredding those that you no longer need.
- Prepare for the Year Ahead! The biggest factor in building your credit score is paying bills on time. Setting your bill pay and budget on autopilot can help you stay organized and efficient no matter what life throws at you throughout the year. Start by ensuring your payment accounts are set up to be paid automatically. Also consider spreading out your payments to best accommodate your monthly budget. From a cash flow perspective, in addition to minimizing expenses, make sure you are doing everything you can to maximize your income for the year.
- Set New Goals! Think about your current goals, and make sure you are on track towards achieving them. You may determine you need to save more or less than you originally planned to reach them. When establishing new goals, make sure they are specific. Consider setting up a separate savings account earmarked towards funding a specific goal. For example, if you are planning a big trip next year, you may have a savings account set up to fund that trip, alone, so you can keep pace with savings for that goal while maintaining an easily accessible account to cover the eventual costs.
- Stay Educated Throughout the Year! It’s important to stay on top of budgeting knowledge throughout the year. Looking at big expenses such as your home mortgage could potentially improve your cash flow. Determine if refinancing your mortgage or making additional payments throughout the year may benefit you. As you circle back to your budget throughout the year, make sure you’re thinking about other ways to cut back on unnecessary expenses.
Chelsea Kessler, MS, FSCP®Â
Financial Advisor
Eagle Strategies LLC
Financial Adviser offering investment advisory services through Eagle Strategies, a Registered Investment Adviser. Registered Representative offering securities through NYLIFE Securities LLC
The information contained herein is general in nature and is provided solely for educational and informational purposes. New York Life does not provide legal, accounting or tax advice. You should obtain advice specific to your circumstances from your own legal, accounting and tax advisors. “New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company
