Senate Cents: A Financial Wellness Blog

Share:

Mastering the Art of Financial Housekeeping

Published: October 4, 2023

Mastering the Art of Financial Housekeeping

Is Your Financial House In Order?

Wednesday, October 11 | 6:00 PM ET

This webinar will cover key concepts such as budgeting, debt management, protection of assets, preparing for retirement, and creating a financial legacy for your loved ones.

Register Now

As Financial Planning Month unfolds, it's time to roll up your sleeves, open the windows of opportunity, and engage in some financial housekeeping. Much like tidying up your living space, organizing your finances can bring clarity, peace of mind, and paves the way for future prosperity. Here are some best practices to guide you through the process:

1. Refresh Your Budget:

Begin with the fundamentals: revisit your budget and ensure it reflects your current financial goals and lifestyle. Account for any shifts in income, expenses, or financial priorities. Utilize a budgeting tool for efficiency and gain real-time insights. Lastly, examine your savings account and explore the option of opening a high-yield savings account for increased earnings.

Don’t have a budget in place? This budgeting worksheet can help you get started.

2. Declutter Your Debt:

Take stock of outstanding debts and create a strategic repayment plan. Prioritize high-interest debts while exploring opportunities for refinancing.

If you’re working on paying off multiple loans, you could explore the idea of consolidating your debt with a personal loan. If you have debt built up across multiple credit cards, for example, the different interest rates and due dates can lead to confusion and missed payments.

If you have private student loans to repay, you might also want to consider refinancing your student loans. You may be able to get a lower interest rate that could help you save money.

3. Emergency Fund Evaluation:

Assess the health of your emergency fund. Is it robust enough to cover three to six months of living expenses? If not, consider redirecting resources to fortify this financial safety net, providing stability in times of unexpected challenges.

4. Investment Portfolio Tune-Up:

Review your investment portfolio, aligning it with your risk tolerance and financial goals. Explore diversification and re-balancing for optimal performance. Stay informed about market trends and emerging opportunities.

If you've held multiple jobs, consider consolidating your investment accounts; managing various 401(k)s from past jobs can be challenging and may not maximize your money. Rolling over these accounts into a single IRA, for instance, is worth considering.

5. Estate Planning Refinement:

Update your estate plan to reflect current wishes and circumstances. Review wills, trusts, and beneficiaries. A well-maintained estate plan ensures a smooth transfer of assets and minimizes potential tax implications. If you need some help getting started, contact our partners at Fellows Financial Group.

6. Insurance Inventory:

Review your insurance coverage, including life, health, and property insurance. Ensure your coverage is adequate and aligns with your current circumstances. Life changes may necessitate adjustments to ensure comprehensive protection. Our partners at Fellows Financial Group can help with this too.

7. Automate Your Finances:

Ensure your bills are consistently paid on time by automating your finances through options like autopay or web bill pay. Given that payment history influences around 35% of your FICO® score, maintaining a record of punctual payments has the potential to positively impact your score.

8. Stay on Top of Your Credit Report:

While you’re at it, check your credit report and review it to make sure it’s correct. If you spot any errors, notify the credit bureaus. You can get a free copy of your report from AnnualCreditReport.com.

In addition, you can check your credit score for free through your my.ussfcu online bank account. You can see how your score changes over time and what may be impacting it the most. Then you’ll know what you need to work on to strengthen your score.

9. Maximize Your Membership:

Be sure to maximize the benefits of your credit union membership. If you hold accounts elsewhere, take a moment to review their features to make sure you’re not incurring unnecessary account fees, overdraft fees, or ATM fees. Ensure you’re earning a competitive APY and not facing excessively high APRs.

And finally, leverage the power of education by utilizing the financial literacy resources we offer. Attend our workshops, read our blogs, and explore our online learning tools.

If you’re looking for more help with financial planning, schedule an appointment to meet with a financial advisor or help yourself to our online resources.

As you embark on this financial housekeeping journey during Financial Planning Month, remember that small, consistent efforts yield significant results. By implementing these best practices, you not only tidy up your financial house but also lay the groundwork for a future filled with financial well-being and peace of mind.

Happy financial planning!

APY = Annual Percentage Yield. APR = Annual Percentage Rate.

Content is for educational purposes and should not be considered as tax or investment advice.

View all posts

Members' Voice Testimonials

This credit union is the best, I love the customer service and you can't beat the interest rates. I'm happy to be a member of this great credit union.

- James · Locust Grove, GA

The branch manager introduced herself and was extremely helpful. She stated that if there is anything we ever need to please let her know. Very positive experience!

- Larry · Cumberland, MD

Greta was absolutely amazing - as always. She makes me and my parents feel valued and supported. We are forever grateful. [The Credit Union] has been hugely supportive over many years. And we feel known and cared for.

- Eliza · Washington, DC

Long as I have been with the credit union, I haven't had any problems. I also like the protection on my account.

- Charles · Upper Marlboro, MD

My overall experience at the credit union was exceptional. The staff was hospitable offering water, my service was timely and professional and the office was well lit and clean.

- Denise · Washington, DC

As a member for more than 40 years, i have always had great service from the USSFCU and know that they stand behind their great reputation.

- David · Silver Spring, MD

A top rate Credit Union, [I'm] privileged to be part of! Thank you for all you do for our family! USSFCU Credit Union was able to resolve our financial situation - vehicle, personal loans, customer service/recommendations, within 6 months. We belonged to another credit union for over 20 years, with results not even close to comparison. We switched ...

- Manuel · Bowie, MD

Your people and products are amazing. The recent [online banking] overhaul is phenomenal. [I've] been electronic banking since Tele action phone banking - paying bills with my push button landline decades ago. USSFCU is light years ahead of everyone else in terms of ease of use and client experience!

- Misty · Brookings, OR

I have been a member for more than 30 years. I no longer reside in the DC area but continue to bank with USSFCU because of the ease and the customer service.

- Tamra · Denver, CO

I have been a member for over 50 years, and I have always gotten good service with loans, when I had to have service at a branch, and when I needed to have money sent to me from my savings account. The personnel have always been friendly and treated me with respect.

- John · Fort Washington, MD

I especially appreciate being able to quickly speak with someone (not a robot) and that person has always been knowledgeable and helpful.

- Bernard · Richmond, VA

Excellent customer service streamlined and transparent process. The representatives are efficient, knowledgeable, and understanding of the type of loans offered by Credit Union.

- Erwin · Ellicott City, MD

The USSFCU behaves as a credit union ought to behave. The staff works with and for the members, not for a corporate board. Interest rates for a car loan, a home improvement loan, and a mortgage are low and terms are transparent.

- Ruth · Takoma Park, MD

Staff are courteous and friendly to work with. Very knowledgeable about services and products offered or available. Excellent follow-up with customers.

- Jacquelyn · Sanford, FL

I have appreciated USSFCU services for many years since I left my work on Capitol Hill. I have appreciated the occasional webinars on purchasing a home or retirement planning.

- Jamie · Washington, DC

I have been a member since 2006, and have always appreciated the customer service response to any concern or query. In addition, as I have traveled extensively, USSFCU has provided support and access.

- Kathleen · Ukiah, CA

I've had a credit union account for decades, even though I no longer work on Capitol Hill. I now have two accounts. I've been able to do all of our banking remotely, by app or by phone.

- Richard · Washington, DC

I have been a USSFCU member for almost 20 years. There is nowhere else I want my money to be. I always receive excellent service.

- Nicole · Alexandria, VA

I deeply appreciate the stellar service, the proficiency, the professionalism, and the kindness. I am truly honored and grateful to bank with a financial institution that treats customers like family.

- Angela · Alexandria, VA

Read More testimonials.