Spring cleaning doesn’t just mean dusting off those bookshelves in your living room (which probably haven’t been dusted since you moved in). Or vacuuming cobwebs off your ceilings (always great fun). Or cleaning the outside of all your windows. Here are eight quick tips to help you tidy up your finances.
- Check your withholding. It’s great if you received a big tax refund this year, but it means you gave Uncle Sam an interest-free loan out of your paychecks throughout the year. You may want to consider reducing the amount your employer is withholding from your paycheck. If you’re not sure what to do, check with a CPA or other tax professional for guidance.
- Check your debts. Getting a handle on your debts, how much interest you’re paying, and when payments are due is a worthy exercise at any time of the year. Search for ways to reduce the interest rate you pay on loans and credit cards. Look for opportunities to consolidate debt if it makes financial sense—and put in place a system to avoid late payments.
- Review automated payments. Many people have recurring payments that are automatically deducted from financial accounts. Review those payments, canceling those for products and services that are no longer used, such as gym memberships or streaming services or apps with programs you rarely watch.
- Shop around. If it’s been a while since you shopped around for better rates on your car insurance, cable, cell phone plan, or other recurring items, now is a good time. You should be shopping for better rates at least once a year to ensure that you’re not overpaying for services.
- Document everything. Financial planners recommend documenting all your accounts, bills, and service provider contact information. You and your loved ones will be happy to have all important information together if there is an emergency or in the unfortunate event of someone passing away.
- Check up on insurance coverage. When was the last time you reviewed your homeowners or life insurance policies? It may be time for an insurance check-up—and not just to make sure you’re getting the most competitive rates. Pull copies of your policy documents to ensure that you have adequate coverage or conduct an annual review with your insurance agent, especially for property-casualty policies.
- Practice cybersecurity best practices. If your passwords typically vary between your birthday or your pet’s name, you should plan to increase your level of security (particularly for financial accounts and email). If you have trouble remembering all your passwords for the various services you use, consider using a password manager. Look for a product that that includes multifactor authentication for the most security.
- Check your beneficiary designations. People pass away, get divorced, get remarried, and have children. When those and other life events occur, people often forget to review their life insurance and retirement account beneficiary designations. Now is a great time to review them and make any appropriate changes.
Please reach out to our team if we can help you with any of these items!