If you’re like most Americans, you’ve suddenly found yourself spending all your time at home. With the absence of commuting, socializing, or other outside-the-home activities, you may be wondering how you can make the best use of your time. Here’s a suggestion: Why not do some financial spring cleaning? It’s the perfect opportunity to not only organize and declutter your home, but also give your finances a little extra love. It might even relieve some stress to be proactive and gain a better understanding of your financial situation. Here are a few ways to do just that.
1. Eliminate Financial Clutter
There’s a reason why we tend to put paperwork off as long as possible—it seems like a daunting task! But just think of how you’ll feel when it’s all done. Start with shredding old bank statements, pay stubs, and anything that has your personal information on it from more than two months ago. This decreases the risk of identity theft, frees up extra space, and allows you to find important documents much faster. Most banks, credit unions, and employers keep a digital file of all these statements should you need them for any reason.
Paper documents related to investments, home improvements, and taxes should be kept for seven years. Use the following link to find more details on what records to keep and for how long.
2. Review Your Monthly Expenses
It’s always a good idea to review your expenses periodically. By reviewing these expenses, you can prioritize and identify any unnecessary expenses you may be paying currently. In addition, it’s important to look at each expense carefully to ensure that you are not paying for services that you are not currently using. It’s important to keep a close eye on your expenses; think of yourself as the CFO of your personal finances.
3. Review Credit Card Interest Rates
If you want something, sometimes all you have to do is ask. Since the Federal Reserve recently cut interest rates, it might be worth a call to see if you can negotiate a lower interest rate on your credit cards. If that doesn’t work, consider consolidating to a 0% interest rate credit card and transferring the balance so you can pay off the debt faster. Also, don’t forget to review your mortgage loan details. In some cases, refinancing your mortgage loan to a lower interest rate can help in paying off the debt faster or decreasing your monthly payments.
About Rocklin Senavinin, CFP®
With over 20 years of experience in the financial planning industry, Roc has dedicated his career to helping individuals live comfortably in retirement and enjoy the assets they have spent their career building. He is co-founder of Fiduciary Wealth Management, a fee-only registered investment advisory firm in Little Rock, Arkansas. As a CERTIFIED FINANCIAL PLANNER™ professional, he has advanced training in the holistic process of creating a personal financial plan that addresses a person’s comprehensive needs for the short and long term. To learn more, connect with Roc on LinkedIn or visit www.fidwm.com. If you have questions, feel free to schedule a phone call using this link.
The views expressed represent the opinions of Fiduciary Wealth Management, LLC and are subject to change. These views are not intended as a forecast, a guarantee of future results, investment recommendation, or an offer to buy or sell any securities. The information provided is of a general nature and should not be construed as investment advice or to provide any investment, tax, financial, or legal advice or service to any person.
Additional information about Fiduciary Wealth Management, LLC is also available on the SEC’s website at https://www.adviserinfo.sec.gov/Firm/284324. Please call or email with questions.