The annual clean is a favorite rite of spring, but have you considered adding to that list: dusting off your finances? Get your financial house in order this year with these tips.
1. Keep tabs on your credit report.
Credit reports can affect your mortgage rates, credit card approvals and apartment requests, among other things. Reviewing and ensuring the accuracy of your credit reports can help you catch signs of identity theft early and save you time and money in the long run.
Federal law requires each of the three nationwide consumer credit reporting agencies – Equifax, Experian and TransUnion – to provide you with a free copy of your credit report every 12 months (if you ask for it). You can get your free credit report at annualcreditreport.com.
Tip: Instead of pulling free credit reports from all three consumer credit reporting agencies once every 12 months, try pulling a report from just one of the agencies every six months. For instance, pull a report from Equifax in January, then Experian in July, then TransUnion the following January, and so on. This way, you’re monitoring your credit report more than once a year, and doing so during the busiest shopping seasons, when identity theft is most likely to occur.
2. Limit or eliminate credit card debt.
Living with credit card debt can weigh heavily on your shoulders, but digging yourself out of it can feel financially rewarding. Experian reports that the average American has $6,354 in credit card debt. What can you do to get out of unhealthy debt?
Fidelity suggests shopping around for low-interest balance transfer offers or loans, or keeping tabs on your spending to identify spots to cut back. NerdWallet provides tips ranging from finding payment strategies to working with your creditors.
Tip: Use your tax refund wisely. While many people perceive a tax refund as “extra money” to be spent on frivolous items, consider putting your refund towards your credit card debt, student or auto loan, mortgage or emergency fund.
3. Grow your emergency fund.
Speaking of emergency funds, according to TIAA, you should plan to have enough money in your emergency fund to cover all of your necessary expenses – such as rent, food, transportation and required debt payments – for three months. Fidelity suggests that you set aside three to six months’ worth of living expenses. Check out this list of 10 ways to build an emergency fund.
4. Live within your means.
Use TIAA’s Budget Worksheet or Cash Flow Worksheet to create a realistic spending plan based on your income, expenses and savings goals. Creating a roadmap for your monthly expenses can help you identify wasteful expenditures, remain adaptable during financial situation shakeups and get closer to achieving your financial goals.
5. Contribute more to retirement.
If you aren’t prioritizing your retirement savings, you could be missing out on free money. GW’s 403(b) retirement savings plan allows you to make pre-tax or post-tax (Roth) contributions, with an annual IRS cap of $18,500 for 2018 (employees age 50 and older may contribute an additional $6,000, for a total of $24,500). If you are also enrolled in the 401(a) retirement savings plan, for which you are eligible following two years of service*, you can receive a GW matching contribution that is up to six percent of your eligible compensation if you contribute at least four percent. This match is in addition to the four percent GW base contribution.
*The two-year service requirement may be satisfied in whole or in part by service at another educational organization described in IRC Section 170(b)(1)(A)(ii) or 511(a)(2)(B), or with a college or university located outside the United States with accreditation or similar designation from the country where it is located. If applicable, please complete the 401(a) Prior Employment Verification Form.
6. Update your will.
It is advisable to review your will at least once a year to ensure that it is aligned with your current situation, assets and wishes. You should also check your will following major life changes, including the death or birth of an heir, purchase or sale of real estate, significant shifts in your financial situation, changes to the tax code and so on. Remember, if you are enrolled in the GW group legal program through Legal Resources, will preparation, review and updates are services that are covered at 100 percent. If you are not enrolled in the legal plan, you can receive discounted legal services through GW’s Wellbeing Hotline – Resources for Living (attorney must be selected from within the Resources for Living Network).
7. Schedule a one-on-one with a financial consultant.
Part of being financially savvy involves taking advantage of free resources at your fingertips. As a GW employee, you have access to complimentary individual counseling sessions with Fidelity and TIAA financial consultants. You can even schedule the in-person consultation on campus, if you prefer.
Topics that can be discussed during a personal appointment with a TIAA or Fidelity financial consultant include:
- GW’s retirement benefits program
- Opening a retirement account
- Allocating investments
- Retirement planning
- Consolidating retirement accounts
- Other ways to invest and save
- Transitioning to retirement
- Navigating your retirement account
- Estate planning
- Available workshops/webinars
- College planning
- And more!
Schedule Your Appointment
- Fidelity: Make an appointment online or call (800) 642-7131
- TIAA: Make an appointment online or call (866) 843-5640
Bonus Tip
TIAA* and Fidelity provide free live webinars each month, with topics ranging from investing to saving for college to preparing for retirement. See the full schedule of upcoming webinars, and be sure to tune in!
*TIAA participants can log into the TIAA webinar portal with their existing TIAA.org User ID and password; non-participants will need to register for guest access.
Tackling your finances and getting them under control can leave you feeling rejuvenated and confident about your financial health and future. Take this opportunity to spring clean your financial goals and set yourself up for success. You are the ultimate steward of your finances.
