Spring cleaning is about more than just opening the windows and letting the fresh air in! Use the inspiration a new spring brings and dust the cobwebs from an area that may not get as much tidying as others—your finances.
One of the simplest ways to introduce more organization into your life is to sort important documents. If your documents are already well-organized in a filing cabinet, scan them and keep digital backups within quick reach if you ever need to forward them. If you decide to go mostly (or entirely) digital, keep backups in multiple locations, like a flash drive or the cloud.
File important receipts alongside instruction manuals, proof of purchase, warranty information, and other relevant loose items. Creating a physical binder alongside digital backups of these documents is a great way to keep originals intact.
It’s a good idea to review your health, life, auto, home, and other insurance policies at least once or twice a year. If you have questions about your coverage, it’s best to ask before there’s an incident.
Your insurance requirements may need adjustment as your family and health status change over the years. Plan ahead to avoid gaps in coverage and research alternative insurance options beyond employer-based insurance plans. Reviewing your insurance policies can help keep your level of coverage best fitting for your needs and budget.
The Fair Credit Reporting Act (FCRA) is a federal law that protects the information in your consumer report. The FCRA allows you to obtain a free copy of your credit report from each of the major credit bureaus annually and dispute any incomplete or inaccurate information. By choosing to obtain one of these reports at a time, you can obtain a free credit report three times annually.
Catching a mistake and allowing time to fix it is better than missing out on a loan or receiving a higher rate because of an error on your credit report. Your credit is used for more than just applying for loans. Landlords, insurance companies, or prospective employers may check your credit report to determine your creditworthiness and financial risk factor.
Avoid paying for more than you have to each month by making a list of your current subscriptions. Television, music, auto-ship, delivery, mystery boxes, and more can quickly add up. If you find that you’re not using your services as much as you used to, put them on a temporary hold and see how much you miss them. If the hold comes to an end and you didn’t even notice you were without it, it’s time to cut the cord.
Visit our DIY Guide to Unsubscribing and Saving for more tips and tricks.
The best budgets are ones that you can follow and stick to over a lengthy period of time. Still, even the best budgets need modifying at least once annually. Task yourself with saving additional funds per month or add in new frequent expenses that didn’t exist when your last budget was created.
If adhering to your budget is a challenge, analyze where things went astray and try to remedy them going forward. Ask yourself these questions:
If you owed in the last year or perhaps want a smaller tax return and more in your paychecks, work with a tax advisor to make the proper adjustments.
Additionally, if you've welcomed a new family member, your taxes will look a bit different. Make sure to work with a tax professional to navigate any changes to your income tax documentation.