We would all love to spend less time worrying about our finances. One of the simplest and most effective strategies to make this a reality is first to spend some time organizing your financial house. By investing some time upfront, you may spend less, make your life easier, and minimize your financial concerns.
Even more importantly, getting your financial house in order will also give you more time for what really matters in your life. Here are some strategies that will provide a good start and put you on the road towards getting your financial house in order.
Automating your bills and accounts not only streamlines and organizes your life, but also has long-term benefits for your financial world. By automating your savings you give yourself a chance to save before your money hits your spending account. Paying your bills automatically tends to improve your credit score, makes budgeting simpler, and can also make income tax preparation easier.
Look For Ways to Spend Less
We would all like to have a bit extra, and you may be surprised at how much extra you can come up with by tracking your spending and getting creative. Here are some areas where you can shave off a bit of your budget.
Refinance your mortgage
Every little bit helps, and lowering your monthly payment, even by a small amount, may help you save more for your future and put more money towards your other goals.
Lower Your Taxes
Taxes are inevitable, but there are ways to reduce the amount you end up paying. Some simple and beneficial ways to do this are to boost your retirement savings, contribute to a Health Savings Accounts, or to donate to charities. Finally, don’t just depend on your tax preparer to ask about tax savings at tax time. Ask others about tax saving tips, particularly your financial advisor.
Stop Wasting Money
While this may seem oversimplified, we all have things we spend too much on that are not necessities. In order to evaluate your spending, ask yourself these two questions:
- Am I paying for stuff I don’t use?
- What do I spend too much on?
Sell Your Stuff
Stuff tends to pile up in our lives. Take a look at what’s around you and sell what you no longer use or need, or perhaps what you never needed in the first place!
Reevaluate Fixed Costs
There may be items in your budget that you have just assumed are fixed but may not be, such as property and auto insurance, or even credit card and banking fees. Do a bit of research to see if anything can be trimmed down.
Get out of debt
Debt is eating away at potential savings. When you are paying 10-30% interest on any number of credit cards or loans, you are cutting down on the money you have available to put towards your goals. Become relentless about reducing your debt and interest costs and consolidate accounts where you can. Make it a priority to use any extra funds to reduce and eliminate high-interest accounts first.
These straightforward tips will give you plenty of chances to improve your financial house, which will bring many long-lasting rewards. You will find that you have more in savings, and your options and opportunities are better because you adopted these simple organizational habits. We would love to meet with you to brainstorm and integrate ways to get your financial house in order. Please contact us at info@goostreefinancial or call us at (913) 663-1144.
About Michael Goostree
Michael Goostree is the founder of Goostree Financial Group, an independent, father-son financial planning firm serving individuals, families, and business owners in the greater Kansas City metropolitan area. With more than 45 years of experience in the financial services and insurance industries, he brings a wealth of knowledge to the table in regards to retirement planning, wealth management, and insurance. Believing plans are the key to success, he focuses on building comprehensive and personalized plans for every client he works with. To learn more about how Michael may be able to help, connect with him on LinkedIn, call his office at (913) 663-1144, or email him at email@example.com.