Financial Spring Cleaning

The advent of spring is the perfect time to clean up your finances as well as your home. A 2018 survey shows that almost nine out of 10 people set a money goal for 2019, but all too often these fail just like a New Year’s resolution. Here are some tips that will help get your financial house in order.

  • Use your tax refund to pay off outstanding debt. Those that receive a large tax refund should consider adjusting their withholdings to help their cash flow throughout the year.
  • Review your budget and set up an emergency reserve fund. It is recommended that a minimum of three to six months of living expenses be saved in a bank account in case of an unexpected circumstance like a job loss or medical emergency.
  • Consider monthly contributions to a traditional or Roth IRA. Smaller amounts are much easier to manage than a large contribution on April 15th.
  • Put the shredder to work and get rid of excess paperwork, especially sensitive documents. In doing this remember to keep records that may be requested by the IRS in case of an audit. I recommend that seven years of this paperwork be kept to be safe.

In addition to all of this, review your financial situation either with a certified public accountant (CPA) or a certified financial planner (CFP). A CPA will have more time to discuss matters now that tax season is over and can recommend a CFP to enhance your long-term financial plan.