Spring Cleaning - It's Not Just for Your Home

Every year as spring approaches, many of us take time to do spring cleaning of our homes. This may not be the only area that could use a deep cleaning. Our lives can become filled with so many activities and priorities that more than just dust can build up over time. As we head into spring and conclude tax season, our personal finances could probably use some spring cleaning as well. Below are ten ways to spring clean your financial life this year:

1. Discard old receipts. These little pieces of paper can end up in every corner and crevice. Round them up and discard those you no longer need. Be sure to keep those for larger purchases that have longer or extended return periods and those you may need for tax purposes.

2. Be sure your insurance and estate planning documents are in a central location. Can you find these documents in an emergency? Do you have duplicates in a safe deposit box or stored in a secondary location? Be sure these documents are together and in an accessible location.

3. Purge old bills and create a central location for those you need to keep. We pay them and set them aside. Don’t let those old bills build up in drawers. Decide how many months of bills you may want to keep either in paper form or electronically, depending on your method. Purge the old and make a place for the current.

4. Pull your credit reports and review them for accuracy. Be informed of what others may find if they pull your credit report for any official purpose.

5. Cancel contracts with service providers you no longer use. Are you using the gym membership you signed up for last year? What about the movie or music service you subscribed to at one time? If you use it, keep it but if not, lose it and save a little.

6. Re-evaluate your insurance coverage to be sure they are still sufficient for your life. Don’t let your insurance coverage lag behind your life changes. Contact your insurance agent for an annual review to be sure you don’t have too little or TOO MUCH!

7. Update beneficiaries on insurance policies, retirement accounts, bank accounts, etc. You work hard for the financial assets you build over time. Be sure they are set up to pass on to the right people in the event of unforeseen circumstances.

8. Assess the allocations in your investment accounts. This is a great time to re-visit the allocations of any investments you have established. Contact your investment professional and set up a time for an annual review.

9. Review your budget. Our lives are ever-changing and our budgets must change occasionally to reflect our current lives. If you have a budget, it’s a great time for a review and if you don’t, it’s a great time to create one for yourself or your family.

10. Establish your top three financial goals for the next 12-months. What would you like to achieve in your finances over the next year? Results begin with a goal!

I hope your finances end up as tidy as your home. Happy Springtime!