Energize and Organize: Money Management at the Holiday Season and Throughout the Year

'Tis the season of fun and festive holiday celebrations ... Thanksgiving ... Hanukkah, Christmas, Kwanzaa, New Year's Eve and more!  

It's very important to give your financial situation an annual review to assess your areas of strength and areas of challenge.   Here are some tips for you to consider as you work to achieve and maintain financial wellness.


1.  Take Home Pay and the 50-30-20 Rule

• Carefully examine your biweekly checks (26 checks a year) and/or bi-monthly checks (24 checks per year) for your actual take home pay.
• Use the 50-30-20 rule when allocating your resources for needs, wants and savings.
• 50% for needs
• 30% for wants
• 20% for savings

2.  Emergency Savings and Retirement Savings
Emergency savings 

• It is ideal to have three to six months or more of living expenses saved to cover nonnegotiable and negotiable expenses.
• Nonnegotiable (mortgage, rent, utilities, groceries, insurance, etc.) 
• Negotiable (clothing, travel, entertainment, etc.)

Retirement savings

• Ideally, you will have 15% of your salary set aside for retirement.
• If you are currently employed, bump up your contribution by 1% to reach that goal.

3.  Net Worth = Assets vs Debt

• Take a good look at your assets to debt ratio and make every effort to live within your means.  Be sure to have emergency savings available in the event of an unforeseen financial expenses.
• Assets (bank accounts, retirement and investment portfolios, resale value of home)
• Debt  (auto loan, credit cards, mortgage, student loans, etc.)

4.  Credit Scores and Credit Reports
Credit Scores

• Three main credit bureaus (Experian, TransUnion and Equifax) keep your credit history.  Financial analysis firms (such as FICO and Vantage) use that information to crunch your numbers and determine your credit score.
• You can get your credit score at freecreditscore.com or discover.com (even if you are not a customer.)

Credit Reports

• You can get your credit report from all three credit bureaus by visiting  annualcreditreport.com.
• ​Be sure to check for errors and anything that might be bringing your credit score down and make the necessary calls to get the issue addressed.
• Pay bills on time and minimize your debt to keep your credit scores up.

Remember, if you need professional organizing assistance and support with your family life, home and/or office, you are cordially invited to contact ...
Donna LaRoche, M.Ed., Professional Organizer Serving Cape Cod, Metro West and Eastern Massachusetts  Contact 617.640.2366     www.energizeandorganize.com