As temperatures rise, snow melts, and days grow longer, you might get the urge to do a deep clean of your home. Pulling out old or unworn clothes, reorganizing closets, and donating unwanted household goods is a great way to kick off spring cleaning.
As you dust, sort, and purge clutter, don’t forget about another part of your life you can tidy up: your finances.
How do you start spring cleaning when it comes to your bank accounts, credit cards, retirement plans, and more? Here are nine tips for freshening up your finances from U.S. News to help you kick off spring.
Begin with your budget
Pull out your household budget, or spending plan. This is probably the most important piece of information you have about your finances, and if you don’t have a budget yet, here’s a good place to start.
Take a look at your categories, and notice if you’ve been meeting your goals. Are there areas where you’re often spending much more or less than you anticipate? It’s time to adjust your plan.
Don’t let financial tracking because you too much stress, though. If you find yourself constantly making budget adjustments throughout the month, you can consolidate categories into fewer, broader ones.
Tidy up your accounts
Do you have bank accounts you’re not using? It might be time to close or consolidate them, especially if you have open accounts with several different banks. You can get rid of old checkbooks and statements, too, but be sure to shred them.
Do a sweep of your retirement accounts
If you have old 401(k) accounts from a previous job, and now’s a good time to streamline your retirement funds. You can roll them over into a new account, which makes tracking your progress much easier.
Cut down on paper clutter
Most banks, credit card providers, utilities, and other billers have options for “going paperless,” so take them up on it! You can check balances and transactions online, as well as pay. You’ll have fewer paper piles, less sensitive information to shred, and you’ll be helping cut down on paper waste, too.
Look at your tax withholding
Spring is also tax season! It’s great to get a big check after you file, but that also means that you’ve been withholding too much. If you’d rather not give your federal and government an interest-free loan, take a look at adjusting your withholding. You want to come as close as possible, getting as much out of your paychecks without owing the IRS.
Take inventory
It’s a good idea to have an inventory of your home and possessions in case of an emergency, so your insurance can help you replace items as easily as possible.
If you don’t yet have an inventory, you can begin by photographing big-ticket items like electronics, jewelry, furniture, or musical instruments, and writing down approximately what you paid for them if you don’t have the receipts. Then, start a file, and the next time you buy an item, save the receipt.
Shop around
Have you considered your bank savings or interest rates recently? Take a look at what you’re paying (or earning), and compare them with other offers. Ideally, you should look at cable, mobile, insurance, or other plans about twice a year to make sure you aren’t overpaying.
Update your insurance
If you haven’t taken a look at your insurance plans recently, now’s a good time. Read over your policies, and make sure you have enough health, life, auto, homeowner’s/rental, or any other insurance coverage.
If you’ve had significant life changes recently, such as a large raise, a baby, or a housing situation, it’s definitely time to review your plans to make sure you’d be reimbursed for enough money in a disaster.
Shred your paper
Talk about two birds with one stone! You’re cutting down on both paper clutter and your risk of identity theft. Be sure to shred any document with sensitive information on it.
Reprinted with permission from the BBB. Find out more information at www.bbb.org/blog
by Elizabeth Holtan