Is your financial home in
order? From time to time, it’s good to spruce things up a bit. Use some of the
following helpful hints to make the task a little more orderly and worthwhile:
1. Clean the “attic.” That’s the spot where you have stored items such as old, unused
credit cards; nearly empty bank accounts; or savings certificates you forgot to
cash in. Close them out or cash them in.
2. Refurnish your credit “room.” This can include
refinancing your loans with low interest rates, transferring credit card
balances to lower-rate alternatives, or utilizing a home that offers a low rate
and tax-deductible interest. You will appreciate the new “look” you create. It
can be especially pleasing to empty the “room” of some credit commitments by
paying them off completely, thus giving your overall budget more breathing
space.
3. Consider a complete renovation. Is your savings &
investment plan sufficient to meet your short- and long-term goals? You may be
at a stage of life that requires different strategy. Review financial blueprint
with your Financial architect to know the current strength of your financial
home and take corrective action if required.
4. Look at future “housing” needs. What accommodations have
you made for your retirement? If you expect to be relying on government or
company benefits alone, you may want to consider start an additional investment
to supplement your income in golden years.
5. Solidify your “foundation.” Now may be a good time to
review your life insurance, Health Insurance, Critical Illness, Accidental
policies. The policies you started years ago may need updating to meet inflated
costs and your current needs. Setting up an annual review with your financial
planner or insurance advisor can be instrumental in ensuring the adequacy of
your coverage.
6. Protect your home. Update your householder policy and make sure that items are adequately
covered against earthquake; flood, burglary, fire etc. also make a videotape of
your home—both inside and out—as well as your valuables. Store the tape in your
safe deposit box, and add to it as the need arises.
7. Dust off your tax records & Will. The time when you will
need them will be here before you know it. You may also want to speak with your
tax professional regarding any changes you need to make to brighten your tax
picture before filing your return as we are near end of financial year. This is
also a time to incorporate changes in your will for smooth transfer of Estate
as per your wish.
8. Establish a regular “maintenance” program. If you haven’t done so
previously, set up a budget. Make “paying yourself first” — putting a set amount into your savings and
investments every month — a priority. Analyze your current spending habits, and
plan ahead for large bills and expenses.
It
is always more relaxing to live in a clean and orderly home. By taking these
eight steps, your financial “home” will become an inviting, enjoyable corner of
your life!
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