Spring Cleaning Your Finances
As we are officially in the spring season and approaching the end of the first financial quarter, we want to shed some light on some smart financial moves you can make as you start some “spring cleaning”. If you have yet to work on your financial checklist and goals for the year, this is your opportunity and reminder to get started now. So, let’s take a look at some financial tasks you can set for yourself this spring.
- As the bond and stock markets digest the banking crisis, the economic uncertainty calls on us to take a look at what we have and where it is. Do you know what banks your cash is sitting in? Is it FDIC insured? Given all the craziness going on in the banking system, it’s important to make sure your money is FDIC insured and you are being smart with your dollars.
- Secondly, given where interest rates are and have been, park your cash in a high yield savings vehicle, earning up to 3.75%, and FDIC insured. If your money is still sitting in a large money center bank earning close to 0%, this is your opportunity to take advantage of higher interest rates.
- While capitalizing on higher interest rates, you might also want to take a look at your debt. Do you know what interest rates you are paying on your debt? Are your interest rates fixed or variable? Check out our blog on how rising interest rates may impact your wallet and your debt. As we are seeing huge fluctuations and increases in interest rates and are unsure what the future looks like for rate hikes, make sure you are staying on top of your debt payments and not letting interest get the best of you.
- Next, as we approach the beginning of April, we want to use this as an opportunity to discuss tax season. Are you prepared to file your taxes? Have you collected your tax documents and 1099s? Stay organized to avoid unnecessary late penalties or file for an extension if you know you will need one.
- Lastly, another smart financial task you should set for yourself is re-visiting your budget. Given recent CPI data, and with food prices still at all time highs, make sure your budget still works for you and your family. If it’s been a few months since you checked your cash inflows and outflows, now is a good time to make sure you know what you are spending on and if you have more room to save.
While these are only just a few financial tasks of many you should set for yourself, given the uncertain economic environment, revisiting your whole financial picture is extremely important. We know that keeping yourself accountable can be difficult, which is why we are here to help you tackle your financial homework and stay on the right track. If you have any questions or would like us to help you revisit your financial situation, email us at info@shermanwealth.com or schedule a complimentary introductory call here.