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Start 2017 With a Financial Cleanse

By Michael Schupak

Learn more about Michael on NerdWallet’s Ask an Advisor

Do you feel like you’ve lost control of your finances recently? Maybe you went overboard during the holiday season, or you’ve become lax in monitoring your spending.

Whatever the reason, here are some steps toreset your financial baseline in 2017.

Track your spendingfor the next 30 days

This exercise is as painful and time-consuming as it sounds. I’m listing it first because it’s the most important step. If you execute just one item on the list, do this.My wife and I did at the beginning of last year and we’restill seeing benefits.

The practice of tracking will makeyou more focused and frugal when it comes to spending money. You can compare it to a persontracking all of their calories or recording the weight they lift at the gym.

Assess all recurring subscriptions

Many people use at least one subscription service, such as agym membership, styling subscription, wine club, meal delivery service, credit monitoring service orvideo streaming app. There’s nothing wrong with holding these subscriptionsas long as you know how many you have and are receiving the value you expect. Ask yourself whether you’djoin now if you weren’t already a member.

Saveyour annual raise

Often, merit increases go into effect and bonuses are paid in the first quarter. Make a habit of increasing the amount of your paycheck that goes to savings every time you get a raise. You can do this by increasing your 401(k) contribution percentage or the amount you send to your taxable investment or savings account.

» MORE: Best savings accounts

Renegotiate with vendors

This is a tactic from my experience in corporate finance. Every year, we’d list all of our vendors, assess thevalue of each and try to renegotiate better rates. We weren’t always successful, but our efforts always resulted in savings. I recommend you do the same with your personal vendors. Consider your cable, internet and phone service as a starting point and get more creative from there.

Book your 2017 travel early

If you aren’t a planner, this can be tough. However, you might already know a fewweddings or family events you’ll need to travel for this year. Bite the bullet, open your calendars and book a few months ahead of time. Look for no-fee, refundable options when possible. Some airlines have better policies than others, and most hotels let you cancel without a fee up to a few days in advance.

We often travel to Chicago to visit my wife’s family. If we book a few months out, we can usually fly for less than$200, but if we wait until the month before, the tickets can easily cost $500. This adds up fast when it happens a few times per year. Now we book earlierand use an airline that allows for flexibility.

Record your charitable giving

Setting up atracking system for charitable contributions is simple but beneficial. In the past, I’ve tracked the big-ticket charitable contributions, but failed to capture several small ones. If you have a process at the beginning of the year, you’re more likely to remember everything for the charitable deductions on your tax returns.

Taking this one step further, clean out your closets and purge itemsyou no longer need. Get a receipt for your donations. More charitable contributions tracked equals more money in your pocket when you file your tax returns.

Check your credit

It can take some time to remove inaccurate information from your credit report. Request a copy of your credit report now to ensure everything looks correct. If you wait until a company is performing a credit check, it will likely be too late to report an error, which could lead you to receive higher interest rates or loan denials.

» MORE: Get your free credit score

Keeping your finances under control takes time and effort. It’s easy to veer off track for a few months, especially during the holiday season. Now is the time to reflect and recalibrate for a healthy and prosperous 2017.

Michael Schupak is a financial advisor and the CEO and founder of Schupak Financial Advisors in Weehawken, New Jersey.

This article also appears on Nasdaq.

The article Start 2017 With a Financial Cleanse originally appeared on NerdWallet.

 

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