Financial ghosts of Christmas

'Tis the season for spending money. But eventually it will catch up with you if you're not careful.

Mark and Ryan Paape of Thrivent Financial for Lutherans appeared on Good Day Wisconsin Tuesday with some tips for emerging from the holidays with good financial health.

The financial ghosts of Christmas include:

The Ghost of Christmas Past: Debt

• Use holiday bonuses and monetary gifts to pay off old debt.
  If you receive a bonus at work, immediately put it toward other outstanding balances.  If you don’t keep the extra cash in hand, you won’t miss it.
• Live within your means.
  This may mean cutting back on your family Christmas list or re-wearing your holiday party clothes from last year, but in the long run you’ll be glad you avoided credit card debt.
   

The Ghost of Christmas Present: Facing the facts

• Check your credit report.
  One of the simplest ways to gauge your financial wellness is to view your credit report for accuracy and your own knowledge.
• Prepare for tax time.
  Before you know it, tax time will be upon us.  Believe it or not, now is the ideal time of year to start gathering information for taxes. Remember to include charitable giving to receive maximum tax benefits.
  
  

The Ghosts of Christmas Future: College savings, retirement and life insurance

• College savings
  No matter how small their stockings, it’s never too early to start college savings for your children.  Work with a financial representative to choose a savings method that fits your needs.  Have grandchildren?  It may not be at the top of their list, but contributing to their college fund is one of the best gifts you could give them.
• Retirement
  Talk with your spouse about your retirement goals and objectives to be sure they align and that you’re on track to meet them.  With the market’s volatility in recent years, you may need to revisit your investment portfolio to keep it balanced to help you reach your goals.
• Life Insurance
  We cannot know what the future holds, but we can prepare.  Having life insurance and long-term care insurance is a gift to your loved ones because it alleviates financial burden and allows them to focus on what matters most: the family.