Fall is a magical time of the year throughout much of the country. Waking to crisp autumn mornings, the changing of the leaves to reds, oranges, yellows, and the nostalgic scent of smoke from the cooking fires as if straight from a Robert Frost poem. This season of cider and sweaters is also a great time to sit down and give your finances a comprehensive review.
Considered these five financial tips to help you remain fiscally fit this fall, even if a few winter storms roll through:
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1.     Ensure Your Money is Working for You
Is your money just sitting in a bank or brokerage cash account, or is it accruing interest through an investment strategy? If you don’t do much with your money, keeping it in a savings account, for example, won’t generate much interest. It may be more beneficial to consider a different type of low-risk investment with a better return, such as a high-yield savings account, mutual fund, or a certificate of deposit (CD). Just remember, all investments, including low-risk ones, involve subjecting yourself to risk. You are encouraged to consult a financial professional before making financial decisions.
2.     Consider Cancelling Unused Subscriptions
We live in an age where having several subscriptions is common. However, they are easy to forget about or not notice because they automatically withdraw a small amount of money from your checking account each month. These withdrawals add up over time, and if you have three or four subscriptions consistently withdrawing monthly, this could add up to hundreds of dollars. Instead, this money could be used to save for an emergency fund, your child’s college expenses, to down some of your debts, or invest.
3.     Pay With Cash Instead of Credit
According to Bankrate, nearly fifty percent of credit card holders carry card balances monthly. The problem with consistently holding and increasing debt is that it not only impacts your credit, but also makes it difficult to build an emergency fund, pay more than the minimum on repayment plans, and build a healthy retirement nest egg. Paying with cash over credit also helps keep your credit utilization at 30% or less, which usually helps to keep your credit score higher. Instead of credit, consider making purchases with cash. If it is something you want but don’t need, and you can’t afford to buy it with cash, wait until you can afford it without credit.
4.     Pay Down Debt
It is almost impossible to talk about helpful financial tips without reiterating the importance of paying down debt. If you are young and haven’t yet fallen into debt, try not to. Having debt is buying things that you can’t afford. That doesn’t mean you should avoid building your credit, but only buy what you can afford. There are several purchases where you will likely have to carry debt, like a home mortgage and car payment. However, when it comes to car payments, you do have choices. There are great cars that are affordable as opposed to one with a heavy monthly bill that you struggle to pay. If you have to go into debt, do so with the help of a financial professional.
5.     Consider Consulting a Financial Professional
Managing your finances can be a complex process in today’s world. Not only are there countless things to buy at our fingertips, we must also navigate the increasing cost of living, rising inflation, and unpredictable market volatility. It can be overwhelming, and emotional decision-making regarding your finances could negatively impact you.
As autumn fills you with feelings of a new beginning, it’s the perfect season to pumpkin spice up your finances. Consider consulting a financial professional to help you design short-and long-term strategy and create manageable goals to work toward while juggling the pressures and stresses of living in today’s world.
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Important Disclosures:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
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To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing.
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Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.
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All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.
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Sources:
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This article was prepared by LPL Marketing Solutions
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