Stop messing around!
Use spring momentum to get your financial house in order
Spring cleaning doesn’t have to stop at just getting your home in shape for the season. It’s also a good time of year to straighten out your finances and enjoy some peace of mind. Here are a dozen ways to scrub up your finances — and hopefully save some money in the process.
WIPE AWAY YOUR DEBT
Get over that holiday hangover by clearing Christmas debt off the books as much as possible. Credit cards carry the highest interest rates, so they’re the first debts you should tackle.
Then make it a point to buy gifts throughout the year — taking advantage of sales — to avoid end-of-year buying binges for the holidays.
TRIM YOUR MONTHLY BILLS
Look for areas where you can cut costs. You can save up to $50 per month by canceling your pay-movie channels, for example — it’s a lot cheaper to download or stream films over the Internet. Or lose the cable box for the TV in the spare room no one uses.
You can also look into trimming your landline phone bill by getting rid of expensive extras like call waiting — or shutting off your phone service altogether and only having a cell phone.
STREAMLINE YOUR ACCOUNTS
Toss out all your old statements and checks — better yet, shred them — then consolidate your accounts at one or two institutions. Though interest rates are low just about everywhere, move your money to where it’ll work best for you and where bank fees are minimal.
ADJUST TAX WITHHOLDINGS
If you’re expecting a huge tax refund this year, that means you’re not withholding enough money from your paycheck. Don’t let the government play with your cash all year — make it work for you now. Use the IRS’S 2012 Publication 15 as a guide.
ORGANIZE YOUR TAX RECEIPTS — FOR NEXT YEAR
Instead of tossing your receipts into a shoebox, set up a filing system to separate healthcare forms, travel records, 401(k) contributions, bills and other documents.
COMBINE AND SHIFT YOUR RETIREMENT PLANS
Re-balance and consolidate your accounts. Move old 401(k) retirement plans into one at your present place of employment or into a self-directed IRA through a mutual fund like Fidelity or T. Rowe Price.
HIRE A FINANCIAL PLANNER
The cost of getting professional help to go through your IRA, 401(k) and 529 College Savings Plans to understand where all your money is going could end up saving you cash in the long run.
PLAN YOUR ESTATE
It’s not a subject people like to address, but it’s a good time to create or update your will or trust. Look into setting up a living will and power of attorney should the unthinkable happen — and destroy old documents so there’s no confusion when you’re gone.
UPDATE OR CHANGE INSURANCE POLICIES
Call around or surf the Web for better quotes on car, home and life insurance policies. Rates have gone down lately, so you may be paying much more than you should.
TIDY UP YOUR CREDIT REPORT
Check your credit history and especially look for any errors that could be lowering your rating.
REASSESS YOUR BUDGET
Even if your income hasn’t changed, pore over your budget to see if it still works for you. If you don’t have one, now’s the perfect time to establish where you'll spend your money and how much you can sock away for the future.
CULTIVATE GOOD SPENDING
HABITS
Do you really want to be paying down debt again next year? And if you don’t use coupons, start. The savings may seem small, but they’ll add up quickly.