When you leave a 401(k) at your old employer, you’re likely to forget about it. Rolling over old 401(k)s is key to consolidating your finances. What many people forget is to take their 401(k) with them. When you leave a job, it’s easy to pack up the items on your desk. Online banks and credit unions often have fewer fees and higher interest rates. This is also a good time to consider switching banks if you’re being charged excessive fees. But if having multiple accounts sounds too stressful, then stick to one checking account and one savings account. Some consumers like having multiple savings accounts for various savings goals, like one for vacations and a different one for home repairs. You should have one checking account and at least one savings account for your emergency fund and other goals. Go over your current checking and savings accounts to determine which you should keep and which you should close. Many banks charge monthly maintenance fees if you don’t meet the minimum balance or have direct deposit, so a forgotten account can cost you. Having too many bank accounts can be confusing, expensive, and ultimately harmful. You may consider canceling the card in question to prevent more fraudulent charges. You generally have just 60 days to dispute a charge, so don’t expect to get your money back if that time frame has passed. If you discover charges you don’t recognize, contact the card company to dispute them. You may find recurring charges you’ve forgotten about, evidence of fraud, or unused subscriptions you never canceled. Log on to your bank and credit card accounts and examine all the expenses from the past few months. Tracking your expenses is one of the most important parts of organizing your financial world, especially if you’re not in the habit of examining your bank statements. Examine Your Bank and Credit Card Statements The sooner you discover and address these problems, the closer you’ll be to achieving your goals. This process can also help you identify any blind spots or problem areas, like a brokerage account you’d forgotten about or an old bank account that became overdrawn. Organizing your finances will make it easier to become debt-free, save for retirement, or pay for your child’s college education. You may eventually get to your destination, but it will take a lot longer to get there. Never stopping to inventory what you have and what you owe is like going on a road trip with an incomplete map. Why You Should Organize Your FinancesĪuditing your finances is the first step to getting your financial life in order. We’re here to walk you through each step, so you can rest easy about your financial future. That might sound like an intimidating concept, especially if you haven’t taken a careful look at your financial situation in years, but organizing your money doesn’t have to be painful. It’s spring cleaning season – so why not give your finances a once-over?

Organizing personal finances