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[Financial Friday] What are some tips for organizing financial records?

Organizing your financial records is a cyclical process rather than a one-time event. You’ll need to set up a system that helps you organize incoming documents and maintain existing files so that you can easily find what you need.

What are some tips for organizing financial records??

Here are a few tips.

Create your system

Where you should keep your records and documents depends on how quickly you want to be able to access them, how long you plan to keep them, and the number and type of records you have. A simple set of labeled folders in a file cabinet may be fine, but electronic storage is another option for certain records if space is tight or if you generally choose to receive and view records online. No matter which storage option(s) you choose, try to keep your records in a central location.

File away

If you receive financial statements through the mail, set up a collection point such as a folder or a basket. Open and read what you receive, and decide whether you can file it or discard it. If you receive statements electronically, pay attention to any notifications you receive. Once you get in a routine, you may find that keeping your records organized takes only a few minutes each week.

Purge routinely

Keeping your financial records in order can be even more challenging than organizing them in the first place. Let the phrase “out with the old, in with the new” be your guide. For example, when you get this year’s auto policy, discard last year’s. When you receive an annual investment statement, discard the monthly or quarterly statements you’ve been keeping. It’s a good idea to do a sweep of your files at least once a year to keep your filing system on track (doing this at the same time each year may be helpful).

Think safety

Don’t just throw hard copies of financial paperwork in the trash. To protect sensitive information, invest in a good quality shredder and destroy any document that contains account numbers, Social Security numbers, or other personal information. If you’re storing your records online, make sure your data is encrypted. Use strong passwords, and back up any records that you store on your computer.

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[Motivation Monday] You’re Better Than You Used To Be

Social expectations are hard to let go of. We spend a great amount of precious time trying to fit into pre-established molds and pleasing other people. This is normal human behavior, by the way. We’re a social species and we just love to fit in.

But if other people’s voices are the only voices we listen to, the possibility of feeling inadequate or even lost increases.

This is why we always encourage women to create their own definition of success, one that resonates with their core desires even if it isn’t what they think everyone else expects from them.

PLJ Income - My goal is not to be better than anyone else, but to be better than I used to be

Here’s the thing: desires and goals are personal. Everyone comes from a different background, carries different luggage, faces different challenges, and is currently on a different stage of their journey. All of this diversity results in a wide spectrum of dreams, goals, and achievements that enriches our culture and society. Always keep that in mind, because let’s face it: in today’s world, we need to be reminded that life’s not a race.

Remember, the only competition that matters is the one you hold with your own self. You should live up only to your own expectations.

To check if you really value your own self-growth and development, think about something you’ve made an improvement on — like the time you managed to finish that book, when you courageously asked for a raise, when you finally conquered a fear, and when you admitted you were wrong. Surely, you’ve had those kinds of moments. But did you properly congratulate yourself? Did you celebrate?

Most of the time, we let those “small” self-improvements pass us by when they’re actually what makes us who we are. Well, let’s not underestimate them anymore. Congratulate yourself for every accomplishment you make, because that’s what will make you feel rich and successful.

That’s what makes you better than you used to be.

quote - Nothing will work unless you do

The need to better ourselves is one of our best allies. It’s like a spark within us that keeps us dreaming, creating, and making. It’s what lets us know we’re working. There will be times when that spark won’t be as bright as it used to be and times when it comes and goes, but getting to know how to keep it alive is essential for our minds and our soul.

If you’re wondering how to keep your spark well and alive, take a look at a few of our best ideas:

– Be mindful about your finances.

Knowing that you have financial stability and having a healthy relationship with wealth will allow you to tailor your goals so they fit you perfectly. In other words, when we manage our finances, it means we’re managing other areas of our lives too.

Of course, we can help you with this — especially when it comes to your retirement — but you can also start with something as “small” as going through your budget to make some adjustments or keeping (an authentic) track of your expenses. Trust us, this one will keep your inner flame up.

– Stay in touch with your spiritual side.

Spirituality doesn’t necessarily equal religion. Staying in touch with your spiritual side means finding that spot where you feel centered and realize you’re an important piece of the big puzzle that is this universe. Some people practice meditation, art, and creativity or dedicate a minute of contemplative silence to a higher power (whatever that may be for you).

Spirituality has been linked to overall wellness and often provides comfort in challenging times. Faith is pretty powerful. Don’t underestimate this area of your life.

– Manage your emotions.

By now, it’s common knowledge that you should express your emotions instead of letting them bottle up. Getting there can be tricky, but working on your emotional intelligence is one of the greatest gifts you can give not only to yourself but to your loved ones as well.

Our emotions are also a reflection of our behavior; for example, the number of hours we sleep and how much we exercise have a direct impact on our mood. This is the reason why it’s important to check if there are some habits that you should adopt or remove to improve your emotional wellbeing.

We’ve said it once and we’ll say it again: investing in yourself is an act of love and kindness.

– Cultivate your knowledge.

We have the capacity to learn at every life stage, and we think that’s pretty amazing. In fact, many people mistake lack of cognitive stimulation with some signs of depression. We don’t need to hunt our food anymore, but we should always hunt experiences and gather lessons.

Sign up for some classes, learn a new language or how to play a music instrument, listen to other people’s stories or whatever else you’re curious about, and nourish your mind. We’re not meant to be bored. Let your inner spark guide you and learn something new. Cultivate your knowledge.

These are just a few suggestions on how to improve yourself, but make no mistake: you are already better than you used to be. Acknowledge it, and you’ll soon feel motivated to embark upon new adventures that will make your heart sing.

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[Financial Friday] How long should I keep financial records?

There’s a fine line between keeping financial records for a reasonable period of time and becoming a pack rat. A general rule of thumb is to keep financial records only as long as necessary.

How long should I keep financial records?For example, you may want to keep ATM receipts only temporarily, until you’ve reconciled them with your bank statement. But if a document provides legal support and/or is hard to replace, you’ll want to keep it for a longer period or even indefinitely. It’s ultimately up to you to determine which records you should keep on hand and for how long, but here’s a suggested timetable for some common documents.

How long should I keep financial records? table*The IRS requires taxpayers to keep records that support income, deductions, and credits shown on their income tax returns until the period of limitations for that return runs out–generally three to seven years, depending on the circumstances. Visit irs.gov or consult your tax professional for information related to your specific situation.

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[Motivation Monday] The Simplest Ways to Cope With Overwhelming Feelings

Everyday life can get pretty hectic. Between work, chores, commitments, e-mails and many other daily tasks, there’s barely any (quality) time for yourself.

quote - The key is not to prioritize what's on your schedule but to schedule your priorities

Do you follow up on what’s really important?

In order to achieve everything without feeling constantly overwhelmed, you’ve got to know what’s really important to you. Prioritize and get crystal clear on what really matters in your life.

If you find yourself without time to attend important family events, meet with friends, or to simply take a long relaxing bubble bath, consider this the sign you’ve been waiting for and reevaluate your priorities, right now.

That’s it. The simplest, most effective way to deal with feeling overwhelmed is to prioritize.

Contemplate on what really matters to you and what your goals are. It doesn’t have to be complicated as you already know the answer to this – it’s within you. Like Henry David Thoreau said: “It’s not enough to be busy; so are the ants. The question is: what are we busy about?”

Really dig deep, and ask yourself, “Why am I so busy?” The answer might just be what you need to reassess your priorities.

If you “get” this, but are still unsure how to actually start applying it in real life, take a look below at our best advice to get rid of overwhelming feelings.

1. Track your time.

A lot of people complain that 24-hour days are simply not enough. But, when it comes down to it, most of us are guilty of not using our time wisely.

Track how much time you’re spending on social media, how many hours of TV you watch daily, and how often you check your phone – even when you’re not really expecting an important message or call.

The amount of time spent on such things often surprises people. Tracking your time is an important first step when dealing with overwhelming feelings (and it can also be a huge reality check!).

Don’t get us wrong; we’re not discouraging leisure activities. Rather, we’re saying that before you move on to other projects, activities, and functions, check if you have any time “leaks” that need some fixing.

2. Just say no.

Sometimes you’ve just got to say no. You don’t have to help your friend organize that dinner party; you don’t have to go to your cousin’s boss’s fundraiser, and you don’t have to do that favor simply because you were asked.

Life’s too short to do things you don’t really want to do. Don’t overcommit to things that will burn you out. Value your time as well as other people’s time.

Why? Well, let’s face it. If you’re doing things just to please people, the results won’t be great. There is no shame in saying no as long as it’s from an honest place.

Being clear on your priorities also helps with this, because the more you know what you want, the easier it gets to say no to the things you don’t.

3. Schedule breaks and fun activities.

Scheduling adds consistency in your life and helps lower stress levels which are behind those overwhelming feelings.

Make a habit of scheduling your activities, including the fun and relaxing ones, or you’ll risk not getting them done. Work happens. Requests happen. Something will always happen.

By planning for some free time within your schedule, you’re getting ahead of all that.

Of course, your days won’t always look the same, and sometimes you won’t be able to strictly follow things as planned. However, the visual aspect of having your days planned out can go a long way in making you feel more relaxed and not to mention, it’ll get you pumped up to get things done. Challenge yourself by creating a realistic schedule and actually follow it for a week. We bet you’ll want to keep it up.

Feeling overwhelmed doesn’t mean that you can’t handle your work, life, or relationships. It’s just a sign that you need to become aware of what your true priorities are and act accordingly.

Don’t let life pass you by. Put our advice to the test and get rid of those overwhelming thoughts and feelings that are holding you back. Act on what’s really important to you and always follow up.

Remember, you are good enough, strong enough, and fully capable of doing what matters.

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[Financial Friday] Four Lessons Grandparents and Grandchildren Can Learn Together

If you’re a grandparent, maintaining a strong connection with your grandchildren is important, but that may become harder over the years as they leave for college or become busier building their careers and families. While they’re just starting out financially, you have a lifetime of experience. Although you’re at opposite ends of the spectrum, you have more in common than you think. Focusing on what you can learn together and what you can teach each other about financial matters may help you see that you’re not that different after all.

Four Lessons Grandparents and Grandchildren Can Learn Together1. Saving toward a financial goal

When your grandchildren were young, you may have encouraged them to save by giving them spare change for their piggy banks or slipping a check into their birthday cards. Now that they’re older, they may have trouble saving for the future when they’re focused on paying bills. They may want and need advice, but may not be comfortable asking for it. You’re in a good position to share what experience has taught you about balancing priorities, which may include saving for short-term goals such as a home down payment and long-term goals such as retirement. You’ll also learn something about what’s important to them in the process.

You may even be willing and able to give money to your grandchildren to help them target their goals. While you can generally give up to $14,000 per person per year without being subject to gift tax rules, you may want to explore the idea of offering matching funds instead of making an outright gift. For example, for every dollar your grandchild is able to save toward a specific goal, you match it, up to whatever limit you decide to set. But avoid giving too much. No matter how generous you want to be, you should prioritize your own retirement.

2. Weathering market ups and downs

Your grandchildren are just starting out as investors, while you have likely been in the market for many years and lived through more than one challenging economic climate. When you’re constantly barraged by market news, it’s easy to become too focused on short-term results; however, the longer-term picture is also important. As the market goes up, novice investors may become overly enthusiastic, but when the market goes down they may become overly discouraged, which can lead to poor decisions about buying and selling. Sharing your perspective on the historical performance of the market and your own portfolio may help them learn to avoid making decisions based on emotion. Focusing on fundamentals such as asset allocation, diversification, and tolerance for risk can remind you both of the wisdom of having a plan in place to help you weather stormy market conditions.

Note: Asset allocation and diversification do not guarantee a profit or protect against investment loss. Past performance is no guarantee of future results.

3. Using technology wisely

Some people avoid the newest technology because they think the learning curve will be steep. That’s where your grandchildren can help. With their intuitive understanding of technology, they can introduce you to the latest and greatest financial apps and opportunities, including those that may help you manage your financial accounts online, pay your bills, track investments, and stay in touch with professionals.

Unfortunately, as the use of technology has grown, so have scams that target individuals young and old. Your grandchildren might know a lot about using technology, but you have the experience to know that even financially savvy individuals are vulnerable. Consider making a pact with your grandchildren that if you are asked for financial information over the phone, via email, or online (including account or Social Security numbers); asked to invest in something that promises fast profits; or contacted by a person or business asking for money, you will discuss it with each other and with a trusted professional before taking action.

4. Giving back

Another thing you and your grandchildren might have in common is that you want to make the world a better place.

Perhaps you are even passionate about the same special causes. If you live in the same area, you might be able to volunteer together in your community, using your time and talents to improve the lives of others. But if not, there are plenty of ways you can give back together. For example, you might donate to a favorite charity, or even find the time to take a “volunteer vacation.” Traveling together can be an enjoyable way for you and your grandchildren to bond while you meet other people across the country or globe who share your enthusiasm. Many vacations don’t require experience, just a willingness to help–and learn–something you and your grandchildren can do together.

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