By Daniel Korleski, MBA
As winter begins to fade into the background, it’s the perfect time for renewal, organization, and a fresh start. Improving your financial well-being is no exception! Let springtime motivate you to organize your finances and utilize professional financial planning.
Today I want to share six tips I’ve learned over the years for untangling financial chaos and making professional financial planning much easier. We’ll explore practical steps you can take to declutter your financial world and develop healthy financial habits.
Think of this article as your financial spring-cleaning guide. Let’s get started!
Organize Your Paperwork
The first step to unraveling your finances is simplifying your paperwork. Even though we’re increasingly living in an exclusively digital world, there are still times we need actual physical documents.
Start your organization process by finding a single container where you can store your paperwork. It could be a binder, a locked filing cabinet, or a fireproof safe.
Now divide your paperwork into three piles: bills, statements, and old documents you can toss (i.e., shred!). Gather everything together and place it in a single, easily accessible place.
Organizing your paperwork not only helps you but also benefits anyone who may need to access your financial profile. To make it even more efficient, create a master directory (paper or digital) that lists all your financial details. Make sure you keep this document password-protected or under lock and key, and don’t forget to include account numbers and logins.
Shred It
Shredding old paperwork is crucial for protecting your identity. Don’t just throw it away—shred it!
While you’re organizing your paperwork for storage (step #1), destroy any documents you no longer need: save bills until the payment has been received; keep seven years of tax documents; and hold on to one year of investment records (as long as you don’t require them for warranty or tax purposes).
Don’t forget to shred any documents you still have that are connected to a house or car you’ve sold. It’s time to move on. Since so much of our data is digitized and readily available online, we can stop carrying around stacks of paper records.
Go Green
Save a tree and clear up clutter at the same time!
Enroll in paperless document delivery for all your bills and financial services to reduce the amount of paper that accumulates on your counters.
One of the better ways to keep track of all the usernames and passwords needed for online accounts is by using a password management tool. There are lots of choices these days and it’s a smart way to access all your account details in one place.
Automate Everything
In addition to simplifying and organizing your life, automating your savings and bills provides long-term advantages for financial planning. Setting up automated bill payment helps you prepare your income taxes, create a simpler budget, and potentially raise your credit score.
Here’s another advantage: by automating your savings, you’re giving yourself a chance to save before you even touch the money.
Confront Your Debt
One of the better steps to untangling your financial life is to pay off debt. Paying off debt is one of the fundamental cornerstones of sound financial planning.
When you’re paying 10–30% interest on credit cards or loans, you’re reducing the amount of money you have available to work toward your financial goals. Make it your mission to pay off as much debt as you can, save money on interest, and combine whatever accounts you can.
Start by paying off debt that has a higher interest rate than your other debts. Or, to gain confidence and momentum at the beginning of your debt-free crusade, pay off the loan with the smallest balance first, regardless of the interest rate.
Seek Professional Advice
Now that you have an organized version of your financial life, it’s time to take advantage of professional financial planning.
A financial advisor can help you find ways to optimize your finances and meet your goals. If you’re not already familiar with the benefits of financial planning, meet with an advisor to create a plan that’s customized to align your financial goals with your available assets.
Get Started!
Ready to bask in the glow of your clean financial house?
At Cobalt Private Wealth, our financial planning knowledge and experience is second to none. We’re completely dedicated to helping you grow, manage, and preserve your wealth. In fact, it’s our mission to simplify the complexities of your financial life so you can focus on what matters most.
To contact our firm, reach out to me at danielkorleski@cobaltprivatewealth.com or 719-332-3863.
About Dan
Daniel Korleskii is the President & CEO for Cobalt Private Wealth, where he helps his clients grow, manage, and protect their wealth so they can work toward a stronger financial future. With over 30 years of experience in the financial services industry, Dan has served as the managing director for Investment Trust Company, chief investment officer for the Wealth Management Group at American National Bank in Denver, and regional investment manager for the Greater Colorado Region of the Private Bank at Wells Fargo, where he oversaw the management of over $2 billion. In 2008, he was appointed by the mayor of Colorado Springs to the City’s Investment Advisory Committee. Dan holds an MBA in investment management from Midwestern State University in Wichita Falls, Texas, a Bachelor of Science in Finance from Florida State University, and is a member of both the CFA Society Colorado and The Financial Planning Association.
Dan loves to give of his time to his community and is currently serving as the Board Chair of Catholic Charities of Central Colorado and oversees the Homebound Ministry at St. Paul Catholic Church. He has also served as Chair of the Board of Trustees of Pikes Peak Hospice Foundation, President of the Broadmoor Rotary Club, and Vice President of the Board for the Pikes Peak Chapter of Trout Unlimited. Dan was born and raised in Spain and is fluent in Spanish. To learn more about Dan, connect with him on LinkedIn.
