Out with the old and in with the new as we march headstrong into 2022. There’s a good chance that you’ve recently spent time organizing your home or office to improve clarity and efficiency—the same should be true of your finances! Try some of these tips as you get ready for whatever the new year has to offer:
Go Digital
Switching years—or decades—of paper files to digital may seem like an overwhelming task, but it’s well worth the effort. Make sure your digital folders are intuitive and that your file names are consistent and detailed; this will ensure your files are searchable, so finding them is a breeze when you need them!
Going digital has the added benefit of making your documents searchable and organized for the next generation. If something happened to you, having your documents cataloged electronically helps your beneficiaries track down all your accounts, legal documents, and anything else they may need to put your affairs in order.
Keeping your electronic documents safe is just as important as keeping your physical documents safe. Your electronic files should be kept in a password-protected folder or on an external hard drive that you can lock up.
Take Out the Garbage
Find any outdated paperwork, expired credit cards, and past statements, and dispose of them securely—we suggest a shredder. Remember to look through drawers for those items you tossed in and forgot about.
If you choose to digitize your important documents, be sure to shred the physical documents you no longer need. Be mindful of original documents you need to retain for your records. While you’re at it, comb through your digital files as well. While they may not be taking up physical space in your home, digital files create “mental clutter” when you want to find what you need.
Email inboxes are another great place to purge and implement an organization system. Aim for a zero-inbox policy. A clear inbox ensures that late notices and other important communications are less likely to slip through the cracks.
Set Your Financial Goals
Knowing what you want to save is just as important as knowing what you want to spend. Once your expenses have been assessed, you should have a good idea of how much you can save each month.
If you already have retirement contributions deducted from your paycheck, decide if it makes sense to fund an additional retirement account with your post-tax income. List out all the goals you’d like to save for—big and small! College planning, home renovations, and family vacations are a few examples that can help you get the ball rolling.
Once you’ve calculated and prioritized these savings, have a plan to stay accountable for contributing to them. Designating specific accounts and setting up an automatic savings plan is one way to establish consistency in funding your goals.
Bob has a passion for making your money work hard for you. He takes profound joy in ironing out a plan for a long and comfortable retirement, no matter what your current income or level of wealth. With a work ethic second to none, he has a zeal for transforming uncertainty into stable ways for you to protect your future and your family. He knows that the quality of your life you enjoy today can remain as rewarding—or even better—after retirement.
With a strong background in information technology, Carol is instrumental in building operational policies and strategies that keep the organization functioning smoothly. Carol’s organizational skills and her flexibility to jump from priority to priority along with her commitment to customer service makes her an essential part of the Grimard Financial team. When Carol is not working with the Grimard Financial Family, she is a very creative and accomplished photographer.