6 Ways To Cleanse Your Finances – Reading Eagle

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Just as your home needs to be tidied up and cleaned thoroughly on a regular basis, so do your finances. Follow these six tips to help organize your finances, gain financial clarity, and live the full and meaningful life you imagined.

to organize

It is important to keep important financial documents and information in one place. Create a master spreadsheet with your account number and password. Please keep this document safe and secure. Lock it in a safe or closet if it’s on paper and make sure it’s password protected for digital files. Keep regularly organized documents in folders or files, and don’t forget to destroy the documents when it is time to get rid of them. When you store your electronic files on your hard drive, make sure that they are password protected, encrypted, and stored in a safe place.

Mind your debts

Debt can constantly waste your budget, making it difficult to pay other bills and save for your future. Start by deciding on some form of debt and working to pay it off in a timely manner. It can be the rate with the highest rate that you can eliminate or the one with the smaller balance. If you are having trouble meeting the various loan dates, consider pooling the payments. The advantage of this approach is that you can end up with lower interest rates too.

Large cost planning

Are you on vacation or do you have a big purchase on your radar? Now put your money aside to cover the costs. This eliminates the need to use emergency funds and credit cards that can add to debt. Do not mix emergency money with pocket money. Instead, open a second savings account that will only be used for planned expenses.

Prepare for life changes

Do you have any plans to have a family or start a small business in the near future? Or maybe you are just thinking about retiring. Would you like to buy a car right away or top up an educational savings account for your children and grandchildren? By creating a strategy to achieve your goals, you begin with the concrete steps to achieve your goals.

You may also want to anticipate the risks that could have a material impact on your family’s financial future. Consider taking out life insurance that will protect your family in the event of an unexpected event. The occupational disability insurance can cover your loss of income if you become unable to work. Working with a financial professional is a great way to see if something is missing.

Take care of your retirement account

If you’re still working, it’s a good time to check your contribution level to make sure you’re investing enough money in a tax-friendly vehicle like a 401 (k) or IRA. However, if you were 70½ years old before 2020 or not when you are 72 years old, the IRS will receive a fixed amount from your employer-funded retirement plan (conventional, SIMPLE, SEP). Requests the start of the payout. IRA. This is known as the minimum required distribution, or RMD. Thrivent does not provide specific legal or tax advice, but we can work with you and your tax advisor or attorney.

Set charity goals

One of the benefits of cleaning up your finances is that you can potentially be more generous. Consider reviewing your goals for a donation to your church or preferred charity. You can also set time goals for volunteers that can serve a specific purpose.

It feels great when your home is clean, and it’s a lot easier to keep it clean if you follow up on it regularly. The same goes for your finances. By following these steps regularly, you can gain financial clarity and live with purpose and gratitude.


This article was prepared by local financial experts Rebecca Wise, 610-839-8955 and Bridgit Holly, both for use at 11 E. Philadelphia Ave., Boyertown, 215-368-4888. .. John Lauer, Morgantown, 610-286-5986.

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