While you're giving your house a spring clean, your finances may need it too

Spring has come. I'm a huge fan. It's exciting to start over in so many areas of your life. Working from home also has some advantages. My wife and daughter are in the garage doing spring cleaning. With one eye watching progress, I pressed the keyboard, very proud of your hard work.

When working on your own spring cleaning, consider putting as much strain on your finances as it is on your home and garden. The results can be strong. Here's an easy-to-follow three-step process that will guide your financial spring cleaning: throw it away, save it, and put it away. Let's take a closer look:

Get rid of it. If your garage, closet, or attic is cluttered with all of the tax returns and receipts from the time you joined the workforce, it may be time to lighten the load. The IRS says you should typically only keep records for three years. If you have any questions, go to www.irs.gov and type "how long do I need to keep records" in the search box. Also ask your tax advisor if he has one. In addition to your tax records, delete all of these old investment returns. Since most of the documents are available online, there is a lot of paperwork that should go away ... is it a word?

Hide it. Having a hidden financial plan is a bonus. It is important to mention this in the troubled times we have seen since the pandemic began. This can help you avoid reckless investment calls, increase the need for adequate insurance and cash reserves, and simply keep you informed. And since storage is manageable, now is a good time to evaluate your savings efforts. Take a look at what's going on in your savings plan ( TSP ), Roth IRA, or emergency fund. Consider increasing your spending on your credit card or other debt. Start putting money in savings accounts for a variety of short-term goals by "hiding" it this spring.

To repeat. No, you don't miss out on any investment opportunities or Super Bowl LV (as a Chiefs fan it always hurts!). Be proactive in taking a close look at your finances. Are you saving the right amounts in the right places? Do you have a solid plan to execute to get rid of your debt? Have you updated your will and power of attorney? Do your beneficiary designations correspond to your current requirements? Have there been changes (new home, child, etc.) that should have caused you to review your life insurance coverage? What about your short term and long term financial goals?

Let the crisp spring air be a subtle reminder to take a look at your entire financial plan. Throw it away, save, and repeat this year.

Get the latest financial advice

Whether you're trying to balance your budget, add to your credit, choose a good life insurance plan, or prepare to buy a home, Military.com has it all for you. Subscribe to Military.com and get the latest updates and tips on military benefits delivered to your inbox.

See full article

© Copyright 2021 USAA. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Let's block ads! (Why?)