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4 Financial Spring Cleaning Tips You Need To Know

By on April 29, 2015
financial spring cleaning

Four Financial Spring Cleaning Tips You Need To Know

financial spring cleaning

 

With the end of winter, finally, it is time to think about warm weather, putting away winter coats and doing a bit of financial spring cleaning. Take advantage of the new tax year to lighten up your financial load, make plans for the coming year and clean out the old deadwood in your finances. Here are a few tips to help get you started.

Closet Cleaning is Financial Spring Cleaning Too

Part of the tradition of spring cleaning is to go through our closets and get rid of old clothes and belongings we no longer use or want. This year, why not do a thorough job of it and donate instead of just tossing them? Make sure they go to a reputable organization such as The Salvation Army or Goodwill. You might want to check out the reputation of the charity you plan to donate to by looking them up on Charity Navigator first. You will want to get a receipt for the value of what you are donating so do your homework first. To determine the fair market value that is acceptable to the IRS when you claim your deduction, you can use this IRS site to find out what the tax man allows. Don’t forget to get your receipt when you turn in your donations to your local charity.

Financial Spring Cleaning Those Investments

If your portfolio has a few investments that have not been paying their way lately, this might be a good time to chuck them overboard. It is common to hold on to poorly performing investments in the hope of seeing them regain their value. But if you have been waiting more than a year, grit your teeth and get rid of them. You are simply cluttering up your portfolio and not leaving room for investments that can actually earn their keep.

Clearing Up Your Insurance

Have you been ignoring that pile of Denied Benefits Statements because the fine print is just too much work to go through? Find the time and attack that pile like it was lost treasure, because it just may be. Look up the codes they provide that tell you why they are denying your claim. Then call them up and discuss why you don’t agree. Don’t be abusive, write down notes on who you talk to and their ID number, and follow up with a letter of complaint. You would be surprised how often this results in a check in the mail.

Review Spending

Finally, do you have a budget in place? Make sure you not only have a plan for saving, but you actually follow it. Enough of the year has passed that you should have paid off those holiday bills and be able to review your finances to see if there is a pattern to your spending habits. Now is the time to make plans for putting savings aside for those important goals. So give your life a financial spring cleaning and be ready for that warm summer weather, financially prepared.