As we roll into the spring season and the weather starts to get a bit warmer, you might be thinking of doing a little spring cleaning of your home. This usually consists of boxing up clothes you haven’t worn in years for Goodwill, tackling the clutter in your attic, or fertilizing your lawn in preparation for summer. Well while you’re at it, you might want to start with something more important….like spring cleaning your finances! Let’s start with these 3 easy steps to kick off spring the right way:
1) Dust off your budget – If you found yourself straying from your budget during the holidays and then it continued into the new year, then it’s a great time to get back into the swing of things. Creating a detailed budget with realistic savings goals and consistently sticking to it is by far the most important element in reaching your financial goals. Review your budget closely and compare it your most recent bank account statements to see how you’re stacking up. Are you spending too much on clothes? Eating out too much? Trust me I know how hard it is to pack a lunch for work every day. But once you see the impact it makes on your savings account; you won’t regret it!
2) Check up on your insurance coverages – When was the last time somebody has reviewed your insurance coverages? As life changes and time goes on, your insurance needs can ebb and flow. It could be time to increase your life insurance policy if you’ve recently had a child or maybe purchased a new residence. Or maybe you finally added your dream patio to your home. Did you increase your homeowner’s coverage for this addition? And not to mention the ever so subtle cost increases that can add up big over time. Spring is the best time to make sure all the gaps are covered and shop around to make sure you’re not over-paying for what you need.
3) Cut down the paperwork – This step is great for cleaning up that home office and your finances. Take some time to sort through your paperwork and files. Hopefully 2020 will be the year we opt for less paper! So let’s sign up for e-delivery of statements, shred documents you have at home that you don’t need anymore, and then scan and store the documents you do need to a computer plus a backup source. For instance, the federal government recommends that you only keep bank statements for 1 year and tax documents for 7 years. So why are you still holding onto these old statements? Your account on Investor 360 is a great place for storage!