The birds are chirping, flowers are blooming… it’s time for spring cleaning! Most of us get that urge to scrub the baseboards and clean out our closets in the spring, but there’s another important area of your life that deserves some attention. While you’re getting organized, take these five steps to get your financial future under control.
What you should keep. As you go through your files, hang onto things like bank statements, insurance documents, and receipts from the past year. Keep original loan documents, vehicle titles, and household warranties. And of course, hang onto tax returns from the past seven years.
What you should toss. If you’ve renewed insurance policies, you don’t need older copies of the agreement. Just the current policy will suffice. You can also toss bank statements from more than a year ago, especially if they’re available online. Also get rid of ancient tax returns from more than seven years back, and documents pertaining to items you don’t even own anymore.
Create a special folder for certain items. Your birth certificates, Social Security cards, and estate planning documents should go in this folder. Keep it in a secure place, and make sure your lawyer and perhaps one other trusted person have access to your estate plan.
Since you’re spring cleaning…. Walk through your home with a smart phone, and take video of your valuables. Remember to film inside closets and drawers, also. Make a written list of valuable items, including how much they’re worth, and file this list and a copy of the video in a secure place. If you ever need to file a homeowner’s insurance claim, the process will be much easier.
Budget for this summer’s vacation. Early planning can help you score a better deal on a beach condo, airline tickets, or pretty much any travel-related expense. Set a budget for the entire trip, and figure up how much money you need to set aside from each paycheck. If you plan well in advance of the vacation, you won’t feel tempted to put it all on a credit card when the time comes.
File your taxes. You have until April 18 to file your federal income tax return, but waiting until the last minute can cause you to rush and overlook important deductions. While you’re spring cleaning, set aside any receipts or statements that might pertain to your tax return. That way everything is ready to go when you visit your accountant.
For more financial planning advice, remember you can always give us a call! We can help you establish long term financial goals and make a plan to accomplish them.
