As you open your windows to welcome the first fresh breezes of Spring, it makes good sense to use this time of annual renewal to clean up and help secure your financial life. Here are six steps to take this month to help ensure your finances are in order.
- One idea is to sweep away unnecessary credit card or other interest charges. Currently, credit card interest rates are uniformly high – 20% or even higher – so it is a good idea to keep outstanding credit balances as low as possible. Review whether you have any unnecessary credit cards and, if so, close them by contacting the issuer. Remember to request that the account be removed from all credit reporting companies.
- Speaking of credit, now is a good time to request your free annual credit report at Annual Credit Report.com. In today’s world of criminal cyber activity and identity theft it is important to review your credit report for any suspicious activity. For even more security, consider “freezing” access to your credit report at credit reporting agencies. You can learn more and receive contact information for the three major credit bureaus here.
- If you have an outstanding balance on a variable rate mortgage or home equity line of credit, the rate of interest you are paying each month has likely increased in line with recent upward trends in interest rates. It makes good sense to check current rates and determine whether a refinancing or even a paydown or payoff of a balance could make sense for you.
- Have you maximized your contributions to retirement plans? Taking advantage of the tax deferral benefits of retirement savings is one of the most important ways to prepare yourself financially for retirement. Contribution limits have increased under the recent SECURE Act. While reviewing your retirement accounts, don’t forget to check that your beneficiary designations are up to date.
- Social Security benefits often are the largest source of retirement funds. Confirm that your earnings history and projected benefit payments are accurate by reviewing your information with the U.S. Social Security Administration. The easiest way to do this is to log on or create your account at the Social Security website.
- Finally, check for opportunities to reduce your monthly expenses. As an example, do you use all the cable TV or streaming subscriptions you currently pay for? Similarly, many mobile phone plans offer (but don’t always advertise) unlimited data plans at monthly rates that you may discover are lower than a fixed minute plan.
Taking the time to review your financial life periodically can bring peace of mind and may help you identify ways to improve your financial well-being. Please reach out to us if we can help you navigate your financial life.
