Finance: Fall Finance Check In

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By Lauren Caggiano

The change of seasons brings new possibilities and often the chance to look inward. It’s also the perfect occasion to evaluate your financial health and goals. Ashley Warren, a branch manager with STAR Financial Bank, has a few ideas to help you do just that.

First, she recommends you tame any financial paperwork. It’s best to scan documents and save them on your personal computer. Take care to shred any outdated paperwork. Second, it’s good practice to review your credit report — via freeannualcreditreport.com — with a fine-tooth comb and look for any errors or fraud. Warren suggests contacting the credit bureaus if you notice anything that looks suspect.

If you do notice a history of late payments, you might benefit from evaluating whether something needs to change with your habits. According to Warren, it might be time for a holistic review of finances. Are you spending within your limits? Where are you spending the bulk of your money? Are there areas where you can scale back? For instance, Warren says looking at subscription services can be a great place to start. These can add up fast and sometimes you won’t even miss them if you cancel. The same goes for eating out. Can you limit this indiscretion to just the weekends or special occasions? You might be shocked how much you spend at restaurants each month and that’s money that could be put towards a saving goal.

Don’t forget about drilling in on necessary spending, like insurance premiums. Is there a way you can save by bundling your auto and homeowners/renters policies? It’s always good to shop around and get quotes. Savings might be hiding in plain sight!

On the note of insurance, don’t forget that in the event of an incident and filing a claim, you still might be left with a bill. Do you have a plan for affording an unplanned expense, say a $500 deductible if you get into a fender bender? What if your roof springs a leak or your furnace goes out? While diving into your finances, it pays to think about the other side of the balance sheet— savings goals. What are your short and long-term savings goals? Do you need to pay down debt? Save for retirement? Purchase a new car or house? Start a college savings fund or an emergency fund? The list will vary according to your situation, but chances are good there’s an area you might be able to boost with some time and attention.

Last, Warren suggests having a consistent method to check in with your progress and obligations. Consumers can opt for no-tech, low-tech, or more sophisticated solutions to keep tabs on money.

“I create my own Excel document,” she said. “If people are comfortable with Excel, it’s a great tool to use. But there are definitely a lot of apps. If they’re not like a smartphone person, or if Excel is not their cup of tea, maybe old-fashioned pen and paper are what’s going to work. (The key) is to find whatever works for that person and really stick with it.” a

Resource: STAR Financial Bank, Fort Wayne, starfinancial.com