How do you clean your financial house, you ask?  Other than taking the cash out of your purse and putting it through the washer, here are a few ideas:

1. Clean Out Your Filing Cabinet.

You don’t need to keep every document.  Here’s a list of common statements you should clean out.

• Tax Returns – The IRS statute of limitations on audits are 3 years from the date you filed the return, or 2 years from when you paid the tax, whichever is later.  In some cases, if you filed a fraudulent return or no return, it is recommended you keep the records for 7 years.  My advice:  just keep your tax records forever.  You never know when you need to look up some information, especially if you own investments.  If the IRS ever comes-a-knocking, you want to be able to show documentation.  It’s a pain to deal with the IRS when you don’t have documentation.
• Investment Accounts / Retirement Accounts– Just keep the annual statements, forever.  You can throw out everything else (except for the tax statement), because the annual statements should outline all the investments and transactions.  Just make sure that your statements document the amount paid for the investment, plus any capital gains, dividends, and interest (aka Cost Basis).  You’ll need this info for tax time, and it’s a pain when you don’t have it.  Plus, you don’t want to pay taxes on principal, and essentially get double taxed.
• Bank Statements – I would keep these forever as well.  If you have an annual statement, that will suffice.  I know it’s just a bank statement, but if someone sues you, or you need to prove something to the IRS, you want to have these handy.
• Payroll Documents – At least 7 years.  Even longer if you are a business owner.  They can prove useful if you are in a dispute with an employee.
• Credit Card Statements – These aren’t that important to keep around unless the statement has tax-related purchases.  Keep them around for 3 years, and up to 7 years for taxes.
• Mortgage Statements – Keep them 7 years after the property is sold or when the mortgage is paid off.
• Life Insurance – Keep these statements for the life of the policy, plus 3 years.
• Medical records – Keep them for 7 years, especially if they are claimed on your taxes.

It is always better to be safe than sorry.  Don’t just throw statements away because you don’t want them or seem like clutter.  If anything, just throw them in a box.  You never know when you need them.  Also, just because you can access your statements online doesn’t mean you shouldn’t have your own paper or electronic copy.  Many institutions only hold your statements for a few years, so if you don’t download them in time, you may not be able to get them later.  And remember to shred what you throw out – you can’t be too safe in an age of identity theft.

2. Clean Out Your Budget.

This is a great time to cut out some of the fat from your budget.  Below are a list of budget items that typically worth taking a look at and see if you can lower.  Certainly, you’ll have to do some research, but it wouldn’t surprise me if you can save anywhere between $150 to $300 a month from a few easy adjustments.  Many of these can be expenses can be shaved with 2 hours of work.  Imagine saving $200 from 2 hours of work.  That’s a “pay rate” of $100/hr, and you only have to do it once, but the savings occurs every month!

• Phone Bill / Cell Phone – How many phones do you need, and do you need long distance on all of them?  Downgrade your plan and save a few bucks.  (saves $15/mo)
• Internet – Do you really need the fastest package?  Try downgrading speeds or changing providers.  Or share wireless with a neighbor.  (saves $15/mo)
• Cable TV – How much TV do you watch, and do you really need all those premium channels?  You can catch a lot of shows online and you can get HD for free on basic channels using rabbit ears.  Plus you probably already have a DVD-subscription service, so how many movies do you really need to watch?  (saves $30/mo)
• Credit Cards – Credit cards with high rates (15%+) means more of your payment goes to interest and less to paying off your balance.  Try negotiating a lower rate, or transferring the balance to a lower rate card.  (saves $50/mo)
• Insurance – Do some comparison shopping with your home, auto, health, and life insurance.  Rate changes in combination with a change in policy terms can save you some scratch.  (saves $50/mo)
• Eating Out – Honestly look at how often you eat out.  Could you bring lunch to work?  When making dinner, make a little extra and freeze the leftovers.  It’s cheaper and healthier than grabbing fast food on the way home.  And what about those morning lattes?  (saves $100/mo)
• Miscellaneous – Whether it is clothing, gifts, or car repairs, people always underestimate how much they actually spend on miscellaneous items.  Just being conscientious of these expenses will naturally save you some money.  (saves $75/mo)

If you are able to save a mere $250/mo, it’s like giving yourself a pay raise of $3,000 a year.  If you make $60,000, you just gave yourself a 5% pay raise.  Stash that extra money away, and it’ll make a huge difference towards your retirement or your kids’ college fund.

3. Clean Out Your Investments.

With investments, it is so easy to set it and forget it.  However, investments are something that should be monitored on a regular basis.  It doesn’t have to be every day (depending on what investments you have), but it should be at least annually.  Here are a few ideas that will keep your investments in order.

• Consolidate Accounts – There’s typically no need to have several accounts at several different institutions.  For example, if you have 3 Roth IRAs at 3 different companies, you can consolidate them into one.  It’ll even save on annual fees, and you may even receive some discounts.  Or you can open up a brokerage account, where you can have many different investments from many different institutions in one account.  Less paper, less fees…it’s a win win!

• Rebalance Your Portfolio – Make sure that your investments still meet your risk tolerance and investment objectives.  As one investment (say stocks) grows more than another (bonds) over the course of the year, it will change the proportions of those investments relative to your portfolio.  You may have more stocks than you want/need, and you may need to sell those stocks to bring your stock-to-bond ratio back on track.

• Sell The Losers – While you are rebalancing, take a look at the performance history of each investment.  Performance does not simply entail rates of return, but also the amount of risk needed to achieve the return.  You may be able to find better performers with less risk.  Keep in mind to not compare apples to oranges.  Stocks should be compared to stocks, and bonds should be compared to bonds, and so on.

If cleaning up your investments is too complex, and it is for many, it’s a perfect time to look into getting some professional advice.  They’ll keep you organized so you don’t have to do it every year.

Doing an annual cleaning of your financial house will help you have a pulse on your money.  For the most part, we tend to not know what to do with our money, choose not to deal with our money, or are too overwhelmed with life to be able to manage it.  Keep things simple, spend only 2 hours, and focus on one of these 3 ideas.  Your money will thank you.

Dustin S. Ma is an independent financial advisor and president of LampPost Planning.  He based out of the Bay Area, CA, and can be contacted at (510) 488-3634, dustinsma@lamppostplanning.com, or 2010 Crow Canyon Place, Suite 100, #404, San Ramon, CA 94583.

These are the opinions of Dustin S. Ma and are for informational purposes only.  This article should not be construed or acted upon as individual investment advice.  Please contact your financial professional to discuss these topics.  Registered Representative, Securities offered through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC.  Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor.  Cambridge Investment Research, Inc, LampPost Planning, and shesgotgrove.com are not affiliated entities.

Want to quickly know whether or not you are spending more than you make?  Pull out your last 4 months of bank account statements.  If the balances are going up, then good for you!  You are saving!  But if the balances keep going down, you are in trouble.

Regardless of whether your balances are up or down, you have to find out why.  Grab a piece of paper and write down all your monthly expenses that occur after you receive your paycheck.  It should include the following:

• Housing (rent, mortgage, insurance, taxes, etc.)
• Living (utilities, phone, TV, groceries (not going-out-to-eat), pet expenses, medications, etc.)
• Transportation (car payments, gas, insurance, tolls, public transit, etc.)
• Debt (student loans, credit cards (monthly payments towards past debt; charges from this month should be itemized in other categories of the budget), personal loans, equity lines of credit, etc.)
• Insurance (health, disability, long-term care, life, etc. that are not paid for through your paycheck.)
• Savings (savings account, investments, IRAs, etc. that are not paid through your paycheck.  Do not include 401k, 403b, 457, pension, etc.)
• Investment Property (income, mortgage, expenses, etc.)
• Leisure (going out to eat, memberships, subscriptions, monthly fun expenditures, etc.)
• Miscellaneous (car repairs, coffee, clothing, odds-and-ends, etc.)

Add these up and see how it compares against your monthly paycheck.  Where are some areas that you can adjust?  Typically, it’s the going-out-to-eat and miscellaneous expenses that can be improved upon.  Be reasonable.  If you bring in $3000 a month, and you’re spending $1000 a month on Coach purses and Louboutin shoes, maybe there’s a problem.  $500 a month on mani-pedis and the salon and can’t find a way to save?  It’s time to make some changes.

A general rule of thumb is to save 10% of your monthly paycheck.  It’s a great place to start, but realistically, you really have to be saving at least 20%, if not 30% at a minimum.  If you think about how much it costs to simply retire AND buy a house, that’s a lot of money.  Add in a college fund for the kids and some traveling and there’s your 30%.  But most importantly, regardless of how much you are saving, just save.  Whether it is $300 a month or $30 a month, it’s better than $0 a month.  As you get comfortable, turn it up and save more.  By time you know it, you’ll amass a small fortune!  Or a college fund…Same difference.

Dustin S. Ma is an independent financial advisor and president of LampPost Planning.  He based out of the Bay Area, CA, and can be contacted at (510) 488-3634, dustinsma@lamppostplanning.com, or 2010 Crow Canyon Place, Suite 100, #404, San Ramon, CA 94583.

These are the opinions of Dustin S. Ma and are for informational purposes only.  This article should not be construed or acted upon as individual investment advice.  Please contact your financial professional to discuss these topics.  Registered Representative, Securities offered through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC.  Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Cambridge Investment Research, Inc, LampPost Planning, and shesgotgrove.com are not affiliated entities.

As exotic as these sound, house rental really is a doable way to take a longer vacation. Okay maybe not the infinity pool, but then again, it’s not completely out of the realm. Depending on your destination, renting a home is often the best way to do it, not only budget wise, but comfort wise as well. Think about these things:

•   If going with a few families or large group, you can all stay on one property and split the cost, plus hang out together.

•   Renting a local home gives you a taste of local culture. You’re more in the midst of daily life rather than kept away on a resort or in the middle of tourist traps.

•   A house is just more comfortable. If planning to stay more than a week, a hotel can get really cramped. You can feel at home in a house!

•   Even if going international, it’s easy to do online. Look for credible websites, even VRBO.com is international. You can also search on sites to meet your budget, whether it’s luxury, budget conscious or somewhere in between. Just looking at some of the sites gives you great travel ideas.

•   You may be surprised at how cost efficient renting a home may be when you add up all the travel details.

Whether staying in your own country or venturing to an international destination, take a look into renting a home rather than a hotel. You may end up extending your stay (or at least wishing you could)!

In the jewelry department, of course, you’re not going to give your friend expensive gemstone jewelry (that’s her guy’s job), but pick out some fun other pieces. Look for monogram jewelry, and not just the classic kind. You can put together a necklace with her initials (if she has kids add their initials, too) in fun charm style, like the Waxing Poetic charms. The big baubles with initials are also fun for bracelets. Look for some grown up BFF necklaces, too. Places like Red Envelope sell these, and your bestie would be proud to wear a stylish necklace representing your friendship.

If not something to wear, like jewelry, think about a mani/pedi. But don’t just give her the gift certificate for one, that could sit on her dresser for years without her using it. Instead, make a day of it and take her out to lunch and go for that mani/pedi together. Throw a cocktail in and you’ve got a great girl’s day. If you can’t pull all of this together because of distance or time, give her the gift certificate and a fun pair of flip flops to show off those newly painted toes.

Of course, time is the best gift, and a day of shopping, a movie night or a dinner out is always a great way to celebrate not only her birthday, but also the friendship you share.

First of all, dress the part. Don’t wear your granny panties. Put on your Hanky Pankies so you’re not tucking your underwear all up in your bathing suit. No one needs anymore bulges! Take the time to shave before you go, too. Wear sandals or flip flops to enhance your legs; definitely take off your socks if you’re wearing those. Also, don’t eat a big meal before bathing suit shopping!

Think about what enhances YOUR body. If you think your hips are a little bigger, a skirt may make them look wider, not hide them. If you are large busted, you may need a bra size top with support and wider straps even though you love the smaller skimpier ones. Think about colors and patterns – dark colors are sleeker and patterns more forgiving. Dress your age, too. Even if you are a stunning middle aged mom, don’t buy the same bikini as your teenage daughter. That doesn’t mean you can’t show off your assets, just dress the part.

Unfortunately, bathing suits are one of those things you have to try on. You can’t tell by looking at it on the hanger. But once you get it in that fitting room, you may just love it, and yourself!!

If you are traveling simply within your own region, you probably won’t have much trouble; it’s when you go to another region or country that you may not be able to find what your children normally eat. Here are some tips on getting them to try, and love, some new regional foods:

•   Try street foods. Street foods can usually be eaten with hands, and kids love that! Whether it’s Thai Chicken Satay or a warm sugary crepe, kids will love it. Once they’ve tried one thing, they’re apt to try more.

•   Give them options. Sometimes it’s better to order a few dishes to share, instead of ordering kids their own entrees. Once they see you eating and enjoying, they’ll want to taste it, too. Sharing makes it more fun, too, when you pass plates around and compare favorites.

•   Visit a farmer’s market. Everything is yummy there, and kids can just pick and eat. There’s always something new to try!

•   Stroll the streets and snack. It doesn’t just have to be street food, but take a break and stop in a local cafe for a small plate when you see something yummy. It also keeps the kids from getting too hungry and getting those “hungry grumps” when they’ll be more reluctant to try new things.

Don’t force. Let them try on their own accord, and they will. They may not dive right into the most exotic of foods, but who knows, by the time your travels end, your kids favorite food may be frog legs, basil rolls, or red bean buns. They may never want a chicken finger again!

•   Wander. Go hand in hand with the one you love and wander. As the day winds down (or for that matter, during the day), take the untrodden path and just explore. Venice is full of hidden alleys and off the beaten path streets that may lead you to wonderful treasures, and some great hand holding time, too! It’s always fun to see how the locals live, and Venice is so small it’s hard to get really lost. If you do, just ask how to get back to St. Mark’s Square or the Rialto – everyone knows where those are.

•   Stop at Harry’s Bar and have a Bellini. Sure, it’s a touristy thing to do, but you are, after all, a tourist. Harry’s has a rich history and it is where Ernest Hemingway spent lots of time; he even had his own table. It’s a tiny little place, but the history is huge.

•   Take a gondola ride. Though pretty much only the tourists ride in gondolas these days, it is one of those Venice things to do. If this is too over the top for you, take a ride through the Grand Canal on a Vaporetto (water bus). It’s a great way to see the city, and a sunset ride can be molto romantic.

•   Have dinner on the water. This is one of those romantic things everyone should get to do. Lots of restaurants have waterfront dining. Pick a true Venetian spot, maybe out of the way a bit, and enjoy some excellent, local Italian food along with some good wine, and sip some espresso as the city winds down.

Vacationers in Puerto Rico will have tons to do. The El Yunque and other rain forests and neighboring Mona Island are home to many endangered and rare animals and plants, and no poisonous snakes here! Imagine zip lining through tropical trees or hiking to a waterfall hidden in the midst of a rain forest. There are caves to explore, mountains to climb, and of course, beaches, beaches, and more beaches. Whether looking to relax or play, these stunning waters and beaches offer surfing, snorkeling, swimming or just time on the beach.

With Puerto Rico’s rich history, sightseeing is a must. The island’s culture has had many influences, and the architecture is just as diverse and stunning. San Juan, settled in 1513, is full of history, including famous forts and cobblestone streets, making Old San Juan a beautiful place to tour. Make sure to see the famous churches, the Iglesia de San Jose and the Cathedral de San Juan, which are two of the oldest churches in the western hemisphere. The town of Cabo Rojo offers a beautiful lighthouse and quiet beaches, and you can dine on amazing seafood while watching a romantic sunset.

Some of the luxury resorts offer enough so their visitors never have to leave the resort if they don’t want to. With restaurants, beaches, water sports, pools and spas, everything is there. For those who like to see the culture and experience local life, they can find buzzing nightlife in the cities along with towns full of history and charm.

With its beauty, diversity and culture, Puerto Rico makes an amazing vacation destination. From posh resorts to century old churches, there is plenty to do and see. Though your passport will not be stamped, it will be a vacation to remember.

1.  Wide leg pants – Yes, it’s true. As soon as we all found the perfect skinny jeans, wide legs are making a comeback. Whether they are denim or trousers, work or play, wide leg pants are a fashion must have this spring. Wear them with a bow front blouse and some wedges for work and put on some bell bottomed jeans and a cute tee for a fun weekend look.

2.  Bold prints – Whether it’s bright stripes or a vibrant pattern, find something you love in a bold print. You can go with a top, a skirt or dress, the more the better this season. But if a big piece is too much for you all at once, go with at least a fun print in an accessory.

3.  Bold color -  If print isn’t your thing, go with a bold color, like a lemon yellow dress or a lavish indigo top. Big, rich toned solids are hot this spring.

4.  The 70’s – If ever there was a decade with a fashion statement, it was the 1970’s. All things 70’s are in this spring, from halter tops to big, floppy hats. If you can’t see yourself in a jumpsuit, take on a smaller piece, like a thin belt or some platform shoes.

5.  Neutrals – Ahhh, with all the fun of the rest of this list, a step into a neutral palate has its place, too. Neutrals like beige, nude, and all of the whites (remember whites come in lots of tones) are big. Look for sexy sheers and draping lines. Again, find one perfect piece and add it to your existing wardrobe.

•   Use candles for lighting. Dress up candles you already have with ribbons or flowers and purchase a few more to put everywhere. Candles cast such a nice glow that you don’t need much more for decoration.

•    Stick with beer and wine. Not only do you save on liquor costs, but mixers and garnishes as well. There are some great low cost but tasty wines on the market. Buy a single grease art pencil and guests can write their name (or whatever they want) on their glasses to identify them – no need for wine charms. Have a few bottles of sparkling water for the non drinkers; it’s cheaper and healthier than sodas, and adds to the elegance factor.

•   Have plenty of small bites. You can do appetizers of bruschetta, fruit and cheese, mini pizzas made with flatbreads. Do this instead of a seated appetizer.

•   Serve great food and focus on fresh ingredients. You don’t have to serve a big steak to everyone, but you can make a yummy steak salad for an entree – buy fresh salad ingredients, make your own dressing and grill a couple of steaks, slice and serve. You can serve fresh bread with this and it makes a satisfying and tasty meal.

•   Buy dessert. We often want to make everything, but not only is dessert time consuming, but the ingredients can add up. Splurge on a fabulous dessert or two or a variety of pastries and let guest sample.

The fun of a dinner party is the friendships, and keeping it simple is what works these days. If someone asks what to bring, suggest a bottle of wine. That’s easy for them and doesn’t throw your menu off, but helps out in alcohol costs.