March is a good time to focus on Spring Cleaning your finances and to make sure you have all your documents in order to file your taxes.
1. Taxes – Make sure you have all your documents in order to do your own taxes or take to a tax preparer. You want to make sure you maximize your tax deductions to reduce your tax liability. There is still time to add or start an IRA if you have not done so for the year.
2. Changes In Tax Law – Be sure you are aware of all changes to tax laws or regulations that pertain to your circumstances. This could include updates on tax brackets, deductions, credits or other changes.
3. An Audit – Do a spending audit to identify changes such as subscriptions or services that you pay regularly. Could these be eliminated or renegotiated? Tax time is when you are dealing with your finances and a great time to reorganize them.
4. Create Financial Goals – Do you have a savings account for any large purchases you see in the future? Are you may be planning a trip or have recreational expenses you would like to enjoy?
5. Investments – As we approach the end of the 1st quarter, are your investments in line with the objectives you have for them? Sometimes rebalancing a portfolio to align with your financial goals and risk tolerance is advisable.
6. Retirement – If you are still working and planning for retirement, you should be sure to address the impact of inflation on your retirement savings and investment strategies accordingly.
Dealing with your financial picture does not have to be a stressful topic. There are strategies to build wealth over time such as investing in accounts on a regular basis, have a separate savings account for recreational and large expenses and be conscious of your spending.