Spring Cleaning Your Finances

Spring is almost here!  And with that comes thoughts of growth and renewal, making it the ideal time to give your finances a little sprucing up. We’ve simplified this process into three primary areas to help you efficiently organize and improve your financial situation.

Financial goals– What would you like to achieve this year?

• Categorize your goals into Short term, Medium Term and Long Term to make them more manageable.

• Quantify those goals, both in terms of amount and deadline.

For example, I would like to go on vacation in “x” months and it will cost me “y”.  Divide “y” by “x” and you know how much you have to save each month.

You probably have lots of other goals as well, but by breaking them down into baby steps, it feels more attainable.

This should be an annual event and include the whole family – it’s a great teaching moment with kids too!!

Budget– Make sure you are spending your money on things that are important to you!

• Cancel unnecessary subscriptions – you would be surprised how much they add up to.

• Maybe cut back on one or two items

Money slips away from us with all the daily expenses.  Monthly reports from your bank and/or credit card statements can provide insightful details on where your money is going, enabling you to make informed adjustments. Tackling this monthly prevents the task from becoming overwhelming and caters to the unique aspects of each month.

Credit Cards – use them wisely!

• Save up ahead of time for major expenditures so that you can pay them off immediately but still benefit from points or cash back. Credit cards may seem like easy money, but they have the highest interest rates in town.

• Did you know that you can check your credit report for free?

There are three credit agencies: Experian, Equifax, and Transunion and each one will provide you with one free credit report per year.  This is a good idea if you are planning on getting a loan (such as a mortgage) and to ensure your credit report is accurate.  This does NOT impact your credit score.

“Spring is a time of new beginnings – what better time to have a complete financial review done? ” —Jonathan Gerber CPA.

If you have questions on these topics or anything else, please reach out to your RVW Team – we are here to support you with all your financial questions and ensure your goals are within reach.