Spring is a time of renewal, the perfect time to address annual tasks of cleaning and organization. This year go beyond the annual garage clean-out and set aside some time to get your financial house in order. Here are some tips.
Clean Out Old Files
Having documents with your personal information lying about is risky. You certainly wouldn’t want anyone unsavory getting ahold of information that could later be used to defraud you. In your files, keep up to seven years of tax returns and information relating to current loans, mortgages, and insurance. Shred and dispose of credit card, bank, or brokerage firm statements that could easily be retrieved online if ever needed.
Protect Vital Paperwork
Buy a fireproof lockbox to store your irreplicable paperwork in. Social Security cards, birth certificates, vehicle titles, and the like are very difficult to replace in the event of a catastrophic event, and keeping these critical documents behind lock and key is just common sense.
Take Inventory
In case of a natural disaster or burglary, having a detailed list of your possessions can make a huge difference in the size of your insurance settlement. You can either make a physical list or use your smartphone to snap photos of all of your valuables. Those photos can then be stored digitally in case you ever need to retrieve them.
Update Your Homeowner’s Insurance
When it comes to insurance, you definitely want to take the Goldilocks approach. You want not too much, or not too little, but just the right amount of coverage. Spring is a good time to reach out to your agent and ask them to review your policy to ensure that you’re adequately covered in the event of an emergency. If you’ve made changes to your home in the past year, such as adding square footage with an addition or replacing the shingles on your roof, this can affect your coverage.
Check Your Credit Report
financial experts routinely recommend that you check your full credit report at least once per year. Checking your credit report can help you to better understand your credit situation. It is also important to review your credit report for accuracy and to address any discrepancies that may arise. Federal law allows you to access your credit report once every 12 months, free of charge. Contact the three nationwide credit bureaus (Equifax, Experian, and TransUnion) directly to request your reports.
Update Your Budget
The difference between financial success and ruin can all come down to your budget. Do you know what your fixed monthly expenses are? Or how much you spend each year on clothing? If not, you should find out. By setting and keeping a budget, you can greatly improve your overall financial picture.
Keeping your finances in order can be difficult, but spring provides the perfect renewal opportunity to get yourself back on track. Clean up your paperwork, update your insurance, and plan out your yearly budget. Before you know it, you’ll be off to a less financially stressed year.
*Photo by Sasun Bughdaryan on Unsplash