Want to make Fall Financial Cleaning a thing? We are all for it! Fall always feels like it’s a good time to reboot and restart. What could be more refreshing than the start of a brand new school year? With the crisp fall air comes a surge of fresh motivation! Let’s use this energy to organize your finances! One of the best things you can do for yourself is get yourself setup financially to best support and achieve your life goals. Future you will surely thank you. Here are a few recommendations to help you get started.
1. Boost your emergency fund.
Now is a good time for your emergency fund to shine! One of the best things you can do for yourself both mentally and financially is to make sure you have 3 to 6 months of living expenses set aside. Your emergency fund is great for covering unexpected expenses, such as losing your job during these unpredictable economic times or even for moving costs associated with an unplanned, pandemic-induced move. Good job to everyone who already has an emergency fund! Make sure you reassess and make sure it still matches your current life requirements. For those of you who haven’t gotten around to starting one yet, lucky you now is the perfect time. You can learn more about how to start your emergency fund here.
2. Refinance your loans.
Interest rates are historically low right now and the Federal Reserve has signaled that they plan on keeping rates near zero for the next couple of years. This is great news for borrowers and means that now is a great time to refinance your loans and get a lower rate on your debt. So if you have a mortgage or student loans, definitely take some time and look at your options! Side note, the downside to low interest rates is that the money you have in your savings account is making you 0.05%. This means if you have $10,000 in a savings account you would earn only $5 a year on your money.
3. Take some time to practice financial self-care and organize your finances.
This is the perfect fall activity if you ask us. With the weather getting cooler, wrap yourself in a cozy blanket, grab a warm cup of tea and get down to business! Knowing what you have and what it’s invested in is so crucial to your financial wellbeing. Here are 4 types of accounts you should have and what to look for in each.
4. Try not to obsessively check your investment balances.
The stock market is always unpredictable, but these days it feels even more so. It might be satisfying your masochistic side, but watching your investment balances rollercoaster around is probably not great for your mental wellbeing. Think long-term. The stock market might drop 3% one year, it might gain 5% another year, or it might even gain 29% in another year (like 2019!). Historically, the market on average has returned 10% annually. If your investment portfolio has taken these risks and your personal goals into account, this is all part of that journey so you can relax.
Money can be a huge stressor for all of us. We can choose to ignore it or take the time now to get on top of things to best set ourselves up for success! It might take a bit of effort in the moment, but it truly is worth it. Just like your relationship with anything or anyone, if you choose to neglect your relationship with money, that neglect isn’t going to help your money situation get any better. On the flipside, if you tend to your money relationship and tend to your finances, chances are you’ll get out of it, the work that you put in.
If you are looking for some help with financial planning and investment management, you can schedule a free initial consultation with us here.