Small changes can make a big impact on your financial well-being. Here are some tips on how you can clean your finances this year.
1. Review your budget: identify areas where you can cut back. Look at your monthly expenses and see if there are any recurring charges that you don’t need. Cancel any subscriptions or memberships that you’re not using. Consider negotiating bills like cable, internet, and phone services to lower your monthly costs.
2. Check your credit report: Review your credit report to ensure that all the information is accurate. If you find any errors, dispute them with the credit bureau.
3. Tackle debt: Create a plan to pay it off as soon as possible. Focus on paying off high-interest debt first, like credit cards. Consider consolidating your debt into a single loan with a lower interest rate.
4. Automate your savings: Set up automatic transfers from your checking account to your savings account. This will make it easier to save money and ensure that you’re putting money away for the future.
5. Review your investments: Review your investment portfolio and ensure that it aligns with your goals and risk tolerance. If you haven’t rebalanced your portfolio in a while, now is a good time to do so.
6. Plan for taxes: Review your withholding and make sure that you’re not overpaying or underpaying. Consider contributing to a tax-advantaged retirement account, like an IRA or 401(k).
7. Create an emergency fund: It can help you weather unexpected expenses, like a medical bill or a car repair. Aim to save three to six months’ worth of expenses in an easily accessible savings account.
8. Consider working with a financial planner: A financial planner can help you create a comprehensive financial plan and provide guidance on achieving your goals. Consider working with a planner to ensure that you’re on the right track.
Cleaning your finances can help you improve your financial well-being and achieve your goals. By following these tips, you can create a solid foundation for your financial future. Remember, small changes can make a big impact, so start taking action today.
– Jared Black, Associate Planner