Spring Clean Your Finances

Posted By: Robert Martino, CFP®, CRPC®

As the first signs of spring arrive and you get the urge to clean your house, don’t forget to tidy up your finances as well. Whether you are just entering the workforce, peaking in your career or contemplating retirement, periodic cleaning will help keep your financial house in order. So roll up your sleeves and get to work on this checklist of financial chores.

 

Straighten your financial paperwork

 

Are you hording copies of bank statements, cancelled checks and other financial miscellany? It may be time to purge. Check into current guidelines on retaining financial records and shred excess documents that aren’t required. Then date and store records you need to keep in a safe and private location.

 

Check your credit score

 

Every year you are entitled to a free credit report from three main credit reporting agencies, Equifax, Experian and TransUnion. If you haven’t done so already, request a report from one of these agencies. Not only will you be able to see where you stand, you can also monitor your credit for suspicious activity.

 

Analyze and adjust your budget

 

Take a close look at where your money is going each month and if you’re working within your budget. Do you need to tighten your financial belt? This task often reveals opportunities for trimming expenses and may help you free dollars for other activities you enjoy.

 

Revisit your retirement savings strategy

 

Spring is the perfect time to air out concerns about your retirement plan and reinvigorate efforts to save for your future. If you’re maxing out your annual 401(k) contributions as recommended, consider supplemental savings options to grow your nest egg.

 

Monitor your healthcare spending

 

With healthcare costs rising, you need to kick into high gear and become a smart consumer regarding your healthcare spending. Use your health savings account and take advantage of your Medicare drug benefit if you are eligible.

 

Assess your protection

 

Review your policies to ensure you have sufficient life, auto and homeowner’s insurance. You could find that you are paying for too much insurance. Contact your provider to inquire if you qualify for a good driver discount or other savings opportunities. Look for further ways to save by consolidating your business with one provider. Make sure your beneficiaries are correct on your policies.

 

Review your personal financial goals

 

Where do you want to be next year? In five years? Consult a financial professional to review your finances and develop a plan to help you work toward your goals. If you have a plan in place, check to see if it still makes sense for you. Putting goals and action steps on paper may be the first step to making your dreams a reality.