Faith & Finance

Spring is well under way, the days are getting longer, the weather’s getting warmer, and songbirds have returned from their winter roosts. Now’s the perfect time to do some spring cleaning of your finances! Like your closet and garage, money management can also get cluttered over the long winter months. Today on MoneyWise, Kingdom Advisors President Rob West has some ways to clear out the cobwebs.

•          Close out any old accounts you may have. Make a list of all your current accounts and determine which ones you aren’t or shouldn’t be using any more. For example, if you’ve paid off one of your credit cards, close that account. You shouldn’t have more than one card anyway.

•          If you’ve got an old 401(k) someplace where you no longer work, roll it into your current 401(k) or an IRA.

•          Clean up your paperwork. This is a great time to go through all of your files to see what you can get rid of. For anything tax-related you can’t go wrong by keeping everything for seven years. But for most other things, like bank and credit card statements, maybe utility bills, three years is probably long enough. And don’t throw away anything with your personal information on it without shredding it first.

•          No spring cleaning would be complete without spiffing up your budget. Take time to go through the last several months of statements to make sure you’re allotting the right amount to each category. Then, make adjustments as necessary—this helps you identify and cut out any unnecessary expenses.

•          Start using the snowball method to get rid of any debt. Put some extra money toward your smallest debt and work your way up. Put the rest in an emergency fund so that you’re prepared for unplanned expenses.

•          Decide the best place to keep your emergency fund. If your savings account is at a brick and mortar bank, consider moving it to an online bank like Ally or Marcus where you can get a better interest rate.

•          Automate your savings. You’ve already fine tuned your budget and you know how much you can put in savings each payday. So go ahead and set up an automated transfer to put that amount in savings. Out of sight, out of mind!

On today’s program we also answer your questions:

•           My husband and I, retired, want to travel. We want to purchase a travel trailer. What do you think of reverse mortgages to get one?

•           Interest rates by the Federal Reserve are lower. I have a CD already. Should I get another one now while the interest rates are this low?

Ask your questions at (800) 525-7000 or email them at questions@moneywise.org. Visit our website at moneywise.orgwhere you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources.

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