facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog external search brokercheck brokercheck Play Pause
Military Finances 201: 7 Ways to Spring Clean Your Finances Thumbnail

Military Finances 201: 7 Ways to Spring Clean Your Finances

Managing Your Finances

PCS season will be upon us soon so now is an ideal time to clean up your finances, clear out the clutter, and get a fresh start. Maybe you have more money left over at the end of the month and could use a budget tweak. Perhaps you have too many automatically recurring expenses, or it’s time to apply the brakes to your credit card spending. Whatever the reason may be, consider the following seven suggestions to get a better handle on your finances this spring season.

1. Clean Up Your Spending

Whether you call it a budget or a spending plan, you only need to look in the rearview mirror over the past few months and write down your recurring bills and expenses. When you inventory those expenses, assign a priority number from one to three, with one being expenses you must meet to avoid being evicted from your home and three being rather nice to have, but you could live without. Clear out or reduce drastically your level three expenses. For example, that $70 cable bill is a great candidate for your first cut. Try less expensive streaming services.

2. Clear the Decks and Put Your Savings on Autopilot

That 70 bucks a month you recouped by disconnecting your cable service can now be redirected automatically to your emergency fund. If you don’t have an emergency fund to cover at least six months' expenses, you could literally be one or two paychecks away from disaster.

3. Review Your Tax Withholding

You’re looking forward to that big tax refund this year. However, what you have actually done is give the U.S. Government a 12-month interest-free loan. Give it to yourself as a monthly upfront paycheck increase. Adjust your withholding for a better balance and slide that extra money into savings or another investment plan.

4. Inventory Your Material Wealth

Dedicate an hour or two to photographing and cataloging your household possessions. Concentrate on big-ticket items like your furniture and expensive electronics. Write out the approximate amount you paid and when you purchased the piece. As you bring new items into your home, save the receipts and update your inventory.

5. Check Into Your Renter or Home-Owner Insurance

Your spring cleaning should include a complete insurance check-up. Go to your insurance files, and this time really read the fine print. Is your coverage adequate to replace everything you inventoried after you followed suggestion #4 above? If you own your home, you probably know that replacement costs have risen everywhere. Make sure you're covered.

Also, it wouldn’t hurt to check and possibly upgrade your life insurance, especially if your family has grown or your income has gone up.

6. Plug Into Technology

Let the free and secure technology of your online banking platform keep you on the straight and narrow. Most banking sites have the settings you need to do what you wouldn’t do for yourself. Want to receive a warning when your account balance gets too low or your credit card spending is over a set amount? Your bank can do that via email or text message.

7. Get Your Paper Files in Order

For the financial papers you must keep, devise an orderly filing system. If you’re after a more simplistic method, head to your office supply store and buy an expandable folder with month separator tabs. Stash the papers you usually throw away each month in the appropriate folder.

Finally, remember that bad financial habits come from neglect and passive spending decisions. Spring is the ideal time to get back in the driver’s seat and reacquire the big picture. Clear out the clutter and do away with what is not working for you.

Military Finances are Different

Everyone needs to keep their finances under control. Most people don't have to worry about losing a security clearance if they don't keep those finances in order. Military members have different financial requirements (and benefits) than civilians. That's why we think you should work with a Financial Planner/Advisor that deals with Military members each and every day. If you'd like to see how we do things, use the button below to schedule a free initial consultation.

If you found this article useful, you might like the following blog posts:

Military Finances 101: Which Financial Documents Should You Back Up?


Military Finances 101: The Anatomy of an Index


Military Finances 101: Does It Pay to Buy Travel Insurance?



This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

Disclaimer
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by C.L. Sheldon & Company, LLC ), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. C.L. Sheldon & Company, LLC does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to C.L. Sheldon & Company, LLC website or incorporated herein, and C.L. Sheldon & Company, LLC takes no responsibility therefore. All such information is provided solely for convenience, educational, and informational purposes only and all users thereof should be guided accordingly. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from C.L. Sheldon & Company, LLC . To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. C.L. Sheldon & Company, LLC is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the C.L. Sheldon & Company, LLC ’s current written disclosure statement discussing our advisory services and fees is available for review upon request. DISCLAIMER OF TAX ADVICE: Any discussion contained herein cannot be considered to be tax advice. Actual tax advice would require a detailed and careful analysis of the facts and applicable law, which we expect would be time consuming and costly. We have not made and have not been asked to make that type of analysis in connection with any advice given in this blog post. As a result, we are required to advise you that any Federal tax advice rendered in this blog is not intended or written to be used and cannot be used for the purpose of avoiding penalties that may be imposed by the IRS. In the event you would like us to perform the type of analysis that is necessary for us to provide an opinion, that does not require the above disclaimer, as always, please feel free to contact us.