As you're going about your spring cleaning, this is a great time to get your financial house in order, too. Odds are good that your money-related records could stand some tidying-up and that you would benefit from taking a look at some of your expenses. Here are a few tasks to include in your spring cleaning.
Organize your paperwork: If your file cabinet or desk drawer devoted to financial records is bursting at the seams, now is a good time to get rid of needless paper. Experts say you should keep many tax-related records for six years. But some items - like pay stubs, quarterly retirement statements, medical bills, and utility bills - may be shredded before then.
Ask your accountant how long to keep particular items. You don't have to keep years-old records in your main filing area, though. Now would be a good time to organize the older material, stick it in a plastic storage bin, and stash it in the attic or other out-of-the way spot.
Make the move online. If you're not using your bank's online services, investigate whether banking online can simplify your life. Your bank may allow you to look at your bank statements and cancelled checks online - cutting down on the flow of paper into your house. You may also be able to pay your bills online, saving the cost of postage and the hassle of stuffing envelopes each month.
Check out your credit score. Three major consumer reporting companies - Equifax, Experian, and TransUnion - must give you a free copy of your credit report once a year if you request it. Now's a good time to do so. The information they provide to potential creditors and employers can really affect your financial life.
Check whether your information is accurate, and if you see any errors, contact the company in writing to correct them. Also check to see whether an identity thief has used your information to set up a credit card account. If you see one that doesn't look familiar, follow up on it. Visit annualcreditreport.com to get these reports.
Check your insurance policies. Your insurance needs can change over the course of a year, and you may find that other companies offer lower rates than your present insurer. Shop around to see if a different provider can save you money on car and homeowner's policies. In addition, if you've upgraded your home, be sure your policy reflects the changes.
Be sure your life-insurance policy also reflects any changes in your life, such as a divorce or a new child. You may need to change your beneficiary or increase your coverage.
Figure out how to tackle your debts. Now is a great time to take a look at your debts and review your plan to pay them off, or at least reduce them. Approaches include paying off your smallest debts first or attacking those with the highest interest rate. If you're not using money-management software like Quicken, installing one of these programs on your computer may help you find ways to cut back on expenses and apply the money to your debt.
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