April 2024
Financial Planning

Financial Spring Cleaning

By Myra Alport

With the 2023 tax season in the rearview mirror for most of us, perhaps it’s time to do some financial spring cleaning. Spring may be the ideal time to spruce up your finances with these tips.

Revisit 2024 Goals

What’s on deck going forward? Vacation? Retirement? Home purchase? Relocation? Care needs for family member? Whatever it is, revisit your plans for the rest of the year to make sure you are well-informed and on track. A favorite saying of mine is “we don’t know what we don’t know” so be sure to extend your thinking cap beyond what is most familiar. Identify any potential obstacles standing in the way and let us know how we may assist.

Prioritize Your Emergency Fund

If you don’t have a healthy emergency fund in place, now is the time to build it up. Emergency funds are designed to offer additional security in the event of financial emergencies that may develop during periods of uncertainty. Even if you have an emergency fund in place, you may consider building up your finances to give yourself extra padding to withstand unforeseen events. It is common for consumers to increase their cash reserves when they’re anticipating economic recessions, losses of income, or other disruptions to their financial plans. Saving for the sake of saving is a great habit. It feels good and helps us sleep better at night.

Polish Up Your Credit Score

One of the frustrations of taking out credit is that, when your score is in great shape, you probably aren’t as dependent on credit to finance certain purchases. But when your financial circumstances change and you need to take out credit to bridge financial gaps, your credit score can drop, making it tougher to qualify for this credit. Take preventative action by getting your credit score in great shape before you need it. Pay bills on time, reduce your credit card balances, and check your credit report for errors. If you end up needing credit in the future, you’ll start from a stronger position.

Address High-Interest Debt

Even if you pay off your credit cards in full each month, take note of the current interest rate on a recent credit card statement. You’ll see that it has crept up beyond 20%! Each time the Federal Reserve raises interest rates, so goes the Annual Percentage Rate (APR) on your credit card. Focus on paying off the card with the highest interest rate first without neglecting minimum payments on your other cards.

Cancel Unnecessary Subscriptions

If your monthly bills are on auto-pilot, they’re easy to forget about. Check in on your monthly recurring subscription services to make sure you are still using them. Canceling subscriptions is a relatively simple process by logging in to the company website.

Shop Around for Better Savings Rate

Most of us like to stick to the same bank account for the many services offered. However, in the case of savings accounts, these banks offer paltry interest rates of less than 0.50% APY. Currently, some of the best savings’ accounts are paying rates of nearly 5% APY. Please speak with your advisor so we can help you compare rates and consider switching to one that will pay more with no fees or minimum balances.

Contact Us

If uncertainty has thrown your financial plans into disarray, don’t wait until your finances unravel to seek out help. Give us a call at the office and we can review your current outlook and recommend adjustments to your financial planning with the ultimate goal of curbing—or even avoiding altogether—the financial problems you’re worried about.

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