Five Ways to Organize Your Finances

“Update Your Financial Strategy.”

When it comes to keeping track of your finances, it can be hard to keep everything straight. Every month, quarter, and year can bring changes to your overall financial picture. Perhaps a recent market downturn impacted your investment returns or a job switch resulted in a significant change of income and benefits.

These events underscore why it’s important to keep your financial house in order. Taking some initial steps to get organized will help you understand your current situation and give you the information you need to make informed decisions about the future. Wondering where to get started? Here are five steps you can take today to more efficiently manage your finances:

1.  Assess your finances: Start with the basics: Do you know how much money is coming in and going out? Review your budget and take stock of your bills, expenses, and savings. Try to be as comprehensive as possible so you have a clear picture of your income and how you’re allocating your hard-earned money.

2.  Establish an emergency savings fund: Make sure you’re prepared for unexpected events. Setting up an emergency savings account will help if you experience an interruption in income or suddenly incur a large expense. If you can, consider “automating” your savings by taking a portion of your paycheck and routing the money straight to a savings account. You’ll save time – and avoid the temptation to spend the money on something else – every month.

3.  Review your protection needs: If you’ve experienced a major life event recently, like getting married or expanding your family, consider revisiting your protection needs. Having adequate insurance coverage in place to protect you and your family is an important component of a well-rounded financial strategy.

4.  Update your financial strategy: A financial strategy isn’t just something you develop and file away, never to review again. As life changes, your financial strategy may need to change, too. Review your current plan and make updates where needed to help ensure you’re on solid financial footing.

5.  Meet with a financial professional: Don’t forget to consult with a financial professional for ongoing help with your finances, especially for more complex questions around investments, insurance, and more. A financial professional can help you maximize your finances based on your goals and priorities so you can make the most of all you’ve been given.

Remember: Spending some time organizing your finances now can help prepare you for the long term. Following these steps will better position you to navigate the changes ahead, feel comfortable as you weather the financial ups and downs that may come your way, and give you clarity as you plan for the future.

This article was prepared by Thrivent for use by Heidi Edwards, MBA, BFATM.  She has an office at 305 Castle Creek Drive in Greer South Carolina and can also be reached at 864-616-6433.