Mainsail Financial Group

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Spring Cleaning for Your Wallet

These are completely unprecedented times and we hope, above all else, everyone is staying safe and focusing on health and family. I imagine that this period will not soon be forgotten, and we will always remember what we did and how we managed through this crisis. Hopefully the spring will bring in some good news in regards to COVID-19 and we may be able to ease back into our new normal soon.

The spring can be a great time to buckle down on chores to prepare and free up some time before summer rolls around. This Spring in particular we find ourselves with a bit more time at home to dig in, and we wanted to offer the following tips to start spring cleaning for your wallet as well:

1)      Review your expenses – This is a perfect time to reflect a bit on the lovely b word in finances.. your budget. Regardless of your financial position, it is critical to have some level of a budget in order to determine your savings strategies and structure your plan to your needs. Given the current stay at home orders you may be recognizing a significant change recently with a portion of your recurring expenses on hold. Consider setting this money aside for your future or paying in advance for the services you will use once we are in our new normal to help support these businesses during this difficult period.

2)      Clear out your unwanted expenses – We all use the spring months as a time to clean out the garage and storage closets, to purge the items we haven’t used. Starting this year, consider doing the same with you finances. You may find you’ve been paying for a Netflix subscription you haven’t used for years (except maybe this past month) or a supreme cable package but you only watch the same two channels. Whatever the unneeded expense may be, this is a great time to clear out the junk.

3)      Take tabs on new legislation – In 2020 we have already seen two significant pieces of legislation pass, both of which are quite impactful on personal planning strategies (the SECURE Act and the CARES Act). We have shared more details in a separate article, but in short, required distributions to you and your heirs have changed substantially. The CARES Act also has some provisions which may entitle you to government benefits to help you through this. It is critical to understand tax and legislation changes and reflect on how you might adjust your planning strategies to make the most of the new rules.

Given this time at home, we hope these three tips will provide a simple and easy way to start cleaning up your finances. The legislation changes may be a bit difficult to keep track of, so if you do find you would like some help in this area or have any questions, please do feel free to reach out. Otherwise, the remaining two tips should provide simple action steps to help stay on top of your finances during these tough times in hopes of a much brighter summer.

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