5 Financial Spring Cleaning Tips

In Financial Advice by Kari Smith

With spring around the corner, you may feel  energized and ready to do some cleaning in your home. But tidying should go beyond just floors and windows — here are financial items you should get in order, too.

  1. Insurance

Have you revisited your insurance documents lately? Use the spring season to put a fresh set of eyes on your policies, particularly to review beneficiary designations. If you experience any life events, such as divorce, remarriage, new child or grandchild, it may prompt a need to update your documentation.

  1. Tax documents

You may be looking forward to getting taxes out of mind after filing for the year, but don’t toss your documents. The IRS encourages filers to save all tax-related documents three years from the date of filing. Anything beyond that, you can feel confident about shredding.

  1. Credit score

Did you know that you’re allowed to order one credit report per year — for free? Take advantage of this perk by ordering your credit report to ensure that everything looks correct. Take steps to maintain or improve your credit score, and act swiftly to correct any errors in your report.

  1. Retirement accounts

If your employer matches contributions, you should take full advantage while you can. And if your employer doesn’t automatically increase your contribution amount each year, consider manually increasing it yourself. A small increase can make a big difference down the line, thanks to compounding. Note that the IRS contribution limit for 401(k) plans in 2018 increased to $18,500 per year.

  1. Budget

Should you make any adjustments to your budget? Have you accounted for any recent increases or decreases in your income? Take a candid look at your income and expenses and adjust your budget, as needed, to ensure that you’re covering your living expenses while also setting aside savings.