Spring clean your finances

Got the spring fever itch to freshen up, tidy, and de-junk? The obvious list includes the garage, gutters and pantry but don’t overlook your personal financial records. Below are five simple guidelines and links to further resources to make this process painless each year. TIP: Set aside time include your spouse and/or children in this process. It is a great teaching opportunity for kids. 

1. Update/Create Personal Property Inventory. Make a list of all valuables you possess. Clearly a home, car, and jewelry are all valuables. Other items include expensive electronics, collections, tools, etc. Consider recording the things that would be the most expensive to replace in the event of a natural disaster, and things you may want to leave to a family member when making plans for your will. A personal property inventory could include proof of purchase such as photos, i.d. numbers, receipts, etc. While this does not replace a will, it is a great record to keep updated. Store in a fire-proof safe at home.   
2. Update/Create your Net Worth Statement. Open a Word document. Title it “My Net Worth Statement”. List all your assets (home, car, investments, other items from your personal property inventory, etc.) in one column-both liquid and non-liquid. List all of your liabilities (debt) in another column. To calculate your net worth, take your total assets and subtract your total liabilities. It’s a great way to get a big picture snapshot of your overall financial health. The older you get, as you pay off debt and increase assets, your net worth will increase. 
3. De-Clutter Financial Paperwork. Decluttering paperwork you’ve accumulated is a great feeling! But can I just say please…be sure to SHRED! What do you shred? Absolutely anything with your social security number, account number, password, PIN, signature or any other important personal information, shred it. If it has your phone number, address, birth date, email, name, consider shredding it! All of that information can be used to steal your identity. TIP: Know what to keep-Click here to review the expert-recommended list of what financial paperwork to keep in your home files, in a fire-proof safe at home, and what to keep in a safety deposit box.
4. Get a FREE copy of your Credit Report. Request a free copy of your credit report from one of the three major credit reporting bureaus at annualcreditreport.com.  Each bureau offers you a free credit report once a year.  TIP: Set a reminder to pull one free credit report every four months i.e. Equifax in January, Transunion in May, and Experian in September. That way you’re regularly monitoring your report for incorrect or fraudulent information. 
5. Evaluate Retirement/Investment Accounts. Review any investments, including retirement accounts, and make sure they are still fulfilling the right goals for you in the short and long term. Are your beneficiaries current? If there are any tweaks or updates that need to be made, make them. Consider increasing annual retirement contributions if possible.