7 Step Financial Spring Cleaning

7 Step Financial Spring Cleaning

Suggestions to help you get your financial life on track…

1. Create a budget
It can be difficult to make any real progress, financially, if you’re not paying close attention to what’s coming in, what’s being saved, what’s going out, and where it goes. Sit down and write out a budget. Take a look at your spending, and find areas that could use improvement. Make sure you know exactly what your money is doing (and why!)

2. Start an emergency fund
Even if you’re trying to pay down debt, it’s still a good idea to have something ‘tucked away’ for emergencies. How much is in that fund depends on many factors, but you may want to aim toward setting aside enough money to cover at least three months’ worth of expenses. (Consider kick-starting your emergency fund by holding a yard sale or selling items online.)

3. Prioritize debt
From credit cards to loans, your debt may make it difficult for you to get ahead, financially. Make solid plan to chip away at your debt. Look for ways to cut back on spending and, instead, focus that money toward debt reduction. For maximum impact, you may want to consider paying down high interest debt first.

4. Control your credit
If you don’t know your credit score, find out. If you don’t understand your credit score, educate yourself. Visit usa.gov/credit-reports to learn more, and consider taking steps to remove inaccurate information from your credit report. You may also want to contact credit card companies at least once per year to request a lower interest rate.

5. Review financial documents
Make sure you know exactly where all your important documents and accounts are, including your will, mortgage, etc. Review designations and beneficiaries, and correct or adjust them as necessary. It’s a good idea to review these documents and accounts at least once each year to make sure they remain up to date.

6. Review your insurance
Do you have the right type(s) of insurance? Do you have the proper coverage’s? Are you spending too much on insurance? Are you over-insured? Are you under-insured? Is your insurance adequate for your needs? Take some time to look at all of your policies, and adjust as appropriate.

7. Invest in your future
If you aren’t already saving toward retirement, you should get started sooner rather than later. Even if you start small, taking that first step is important. If you’re already saving for retirement, this might be a good time to increase your efforts. Look for ways to trim your spending in favor of financing your future.

Note: The opinions voiced in this material are for general information only and not intended to provide specific advice or recommendation for any individual. Please remember that past performance of investments may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this newsletter (article), will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for your portfolio. Due to various factors, including changing market conditions, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this post serves as the receipt of, or as a substitute for, personalized investment advice from Vermillion Financial Advisors, Inc. To the extent that a reader has any questions regarding the applicability of any specific issue discussed within this newsletter to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. A copy of our current written disclosure statement discussing our advisory services and fees is available for review upon request.

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