As the Spring season nears, the inevitable Spring cleaning comes with it. However, cleaning out your home is not the only tidying that you might be doing this year. In a tough economy, it might also be a good idea to clean your finances in order to find some of that hidden money that you may not be able to find otherwise. These cleaning tips will make your finances a lot more solid.
1. Understand finances together – many families split up responsibilities and only one adult takes care of the household finances. This can lead to confusion and disorganization, so it is best to get finances understood by both parties
2. Take an inventory – even if you think you might know all of the things in your home, it is always a good idea to take a full inventory. Insurance companies will pay out little if you don’t document things well
3. Remove financial clutter – with modern finance, it’s possible to have many bank accounts, credit cards, debts, mortgages, and a wide variety of other things. It is best to simply remove the financial clutter from your life and you’ll save significant time and money
4. Get rid of old financial documents – keep your tax records for the past 7 years, a year’s worth of pay stubs and statements, and 45 days worth of credit card statements. Otherwise, get shredding!
5. Review your insurance – see whether or not you are justified in paying such a high monthly premium. If not, create an emergency fund, but reduce your coverage to save money in the long-term
Spring Clean Your Finances with These 5 Pro Tips [Forbes.com]