Tip of the month: Spring cleaning your finances

FPCG in Wealth Management 20 March, 2019

Now that Spring is officially here, it’s time to cut through the clutter and organize your financial life. Here are some tips to help you deep clean your finances:

Cut out bad spending habits

Keep a journal or go through your financial statements to identify your biggest financial culprits. Whether it’s a daily spending habit or a monthly one, cut the habit and evaluate how the change positively affects your savings.

Scrub away debt

Since trying to tackle debt all at once can become overwhelming, prioritizing certain payments can be more manageable. Focus on paying off the credit card(s) with the highest interest rate first, while paying the minimum on others.

Plant seeds for long-term investment goals

Sit down with an advisor to discuss long-term investment goals. It’s important to address the best way to go about reaching them. In addition, right around tax time, take advantage of making any contributions you’re able to claim from the year before.

Throw out old files and passwords

Time to take out your shredder! There is no reason to keep any statements that are more than two years old. Resetting passwords is also a good idea from a cyber-security standpoint, and should be done quarterly.

Polish your budget

How’s your budget looking? It turns out that many people actually don’t have one. So it’s time to create this or (if you have one) revisit to see if you’re still on pace.

Rebalance your portfolio

With your advisor, identify if there are investments that you should get rid of so that you can reallocate your capital more productively. Don’t hang onto certain investments because of sentimental value.

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